Press releases

Tata Chemicals' Q3 FY2009-10 net profit surges up by 133 per cent to Rs212 crore

• Q3 FY2009-10 profit before tax at Rs338 crore, up by 89 per cent
• Q3 FY2009-10 profit from operations at Rs445 crore, up by 53 per cent %

• High volumes, lower energy consumption drive urea business
• Rallis contributes strongly to bottom line
• Soda ash, demand growth encouraging, India markets expands approximately 12 per cent
• Consumer products business drives robust growth, ‘Tata Swach’ launched in Maharashtra, on its way to lead the category
• International operations performance encouraging; global demand improving

• Net profit at Rs212 crore compared to Rs91 crore, up 133 per cent
• Profit before tax up by 89 per cent to Rs338 crore
• Profit from operations increases to Rs445 crore up 53 per cent

• Net profit: Rs478 crore
• Diluted EPS (not annualised): Rs20.31

• Net profit at Rs212 crore compared to Rs91 crore, up 133 per cent.
• Profit before tax was up by 89 per cent at Rs338 crore, as against Rs178 crore last year.
• Profit from operations at Rs445 crore, higher by 53 per cent compared with Rs290 crore in corresponding quarter last year.
• Income from operations (net of excise) at Rs2,650 crore compared to Rs3,669 crore in Q3 FY2008-09.
• Basic EPS (not annualised): Rs9.03.
• Diluted EPS (not annualised): Rs9.03.

• Net Profit at Rs478 crore compared with Rs476 crore in the first nine months of FY 2008-09.
• Profit before tax down by 5 per cent to Rs769 crore, as against Rs809 crore last year.
• Profit from operations at Rs1,107 crore decreased by 22 per cent compared with Rs1,418 crore in the corresponding period last year.
• Income from operations (net of excise) at Rs7,276 crore compared to Rs10,733 crore in the first nine months of FY 2008-09
• Basic EPS (not annualised): Rs20.31
• Diluted EPS (not annualised): Rs20.31

• Domestic sales amounted to Rs487.5 crore for the quarter ended December 31, 2009.
• However, Chinese and other imports continues to be a significant threat..

• Performance perspective
  • Tata Chemicals maintained its leadership position in the domestic soda ash market.
  • Sales volumes (including exports) for soda ash at Mithapur for the quarter ended December 31, 2009 stood at 171,400 tonnes..
  • Benefits of price increases taken in the European markets earlier in the year have enabled strong contribution.
  • European bicarbonate production volumes are fully sold for the year.
  • The implementation of ADAPT at Magadi has resulted in considerable cost cutting and enabled the company to better compete with Chinese inputs.
  • Demand in the US domestic market continues to grow strongly. GCIP is operating at full capacity.
  • Sales out of the US to neighbouring markets also improving.
• Industry perspective and outlook
  • Soda ash demand in the Indian market is estimated to have grown at 12 per cent for the first three quarters in FY2009-10.

• Sales volumes of edible salt improved by close to 20 per cent Y-o-Y9.
• All brands namely Tata Salt, I Shakti and Tata Salt Lite continue to do well.
• Tata Chemicals’ market leadership in the domestic edible salt market broke its own record again and reached an all-time high of 61 per cent in the national branded segment.
• Tata Salt continues at number one position with market share of about 44 per cent.
• I-Shakti continues as the second largest salt brand. Its national branded market share is 16 per cent. Cooking soda launched under I-Shakti umbrella.
• Tata Salt Lite continues to receive an encouraging response.
• ‘Tata Swach’ launched in Maharashtra, on its way to lead the category.

• Domestic sales for Q3 FY2009-10 from the crop nutrition business were Rs1,054.5 crore
• Urea operations continue to be at optimal levels on the back of healthy demand.
• Strong volume growth combined with continuing low energy utilisation levels contributed well to profitability.
• A capacity of 240,000 tonnes of neem coated urea is operational. This is part of the full production capacity of 1.2 million tonnes at Babrala.
• Tata Chemicals also proposes to double its urea capacity at Babrala. The investment involved in doubling of the urea facility is estimated to be around Rs3,500 crore. The company will commence work in the project on receiving some assurance with regard to gas availability.
• Phosphatic fertiliser operations are stabilising.
• Speciality fertiliser sales extremely strong.
• The company’s customised fertiliser capacity of 130,000 tonnes is expected to be operational in August 2010.
• Stable commodity prices resulted in improved performance during the quarter at IMACID, Morocco.

• The acquisition of Rallis India, in which Tata Chemicals has a 50.06 per cent stake, has proved to be extremely accretive for the company.
• Financial highlights for the quarter under review:
  • Profit after tax at Rs24 crore for the third quarter has grown by 55 per cent over the same period last year..
  • The company has recorded PBT before exceptional items of Rs41 crore during Q3, a rise of 58 per cent from last year's figure of Rs26 crore.
  • During the quarter, profitability improved, achieving EBITDA margin of 22 per cent compared to 15 per cent in the same period in the previous year. The improvement in EBITDA margin has been achieved through better portfolio mix and improved quality of operations including efficient control over working capital..
• Several new products introduced by the company have been well received.

• The Babrala fertiliser unit won the prestigious Excellent Energy Efficient Unit Award 2009.