Tata Chemicals profit halves to Rs 1,386.85 crore in FY19, revenue rises 9.19%
BusinessToday.In May 3, 2019
Tata Chemicals, part of the over USD 110 billion Tata Group, on Friday reported 48.68 per cent year-on-year fall in consolidated net profit at Rs 1,386.85 crore for the financial year ended March 31, 2019.
"The Tata group company had posted consolidated net profit of Rs 2,702.49 crore in the financial year 2017-18," Tata Chemicals said in a filing to the Bombay Stock Exchange.
Consolidated revenue from operations, however, rose by 9.19 per cent to Rs 11,296.33 crore in FY19 from Rs 10,345.36 crore in FY18.
"Soda Ash and Salt in India continue to perform with healthy margins due to improved operational efficiencies despite stiff competition and higher input price," the company said in the exchange filing.
On the quarterly basis, Tata Chemicals' net profit plunged 62.80 per cent to Rs 450.10 crore in January-March period as compared to Rs 1,210.19 crore in the same quarter last year.
In January-March quarter, revenue rose 7.99 per cent to Rs 2,759.39 crore from Rs 2,555.08 crore in the year ago period.
The company's consolidated net debt stood at Rs 1,959 crore as on March 31, 2019.
"We are pleased to share a positive overall performance despite some challenges on the energy cost and overall plant's fixed cost. The overall operational efficiency continues to grow and the performance was on expected lines across all geographies except a few obstacles in the UK operations. The Indian Chemicals business registered a robust performance. US has delivered better results than the same period last year and Kenya exhibited a positive momentum," said R. Mukundan, Managing Director and CEO, Tata Chemicals.
"The company is pursuing a strong transformation strategy that focuses on leveraging "science" as a key differentiator with an objective to strengthen the Basic Chemistry business, aggressively grow the Specialty Products business and gain a strong foothold in Consumer Business," he added.
The company's board has recommended a dividend of Rs 12.50 per share i.e. 125 per cent for the Financial Year 2018-19, subjected to the approval of the shareholders at the Annual General Meeting.
"The dividend, if approved by the shareholders at the ensuing AGM, will be paid on and from July 10, 2019," it added.
Tata Chemicals shares closed trade at Rs 557.50 a piece, down 3.19 per cent, on the BSE on Friday.
Edited by Chitranjan Kumar