Tata Chemicals Q2 profit dips 48% to Rs 134cr on forex loss

Moneycontrol Bureau

Tata Chemicals' second quarter (July-September) consolidated net profit dropped 47.7 percent year-on-year to Rs 134.4 crore on account of forex loss of Rs 91.2 crore.

Consolidated net sales grew 3.4 percent to Rs 4,282 crore in three-month period ended September 2013 from Rs 4,141 crore in a year ago period.

Revenues from inorganic chemicals increased 6 percent Y-o-Y to Rs 2,015.6 crore and other agri inputs jumped 21.6 percent to Rs 643.16 crore, but fertiliser business sales declined over 4 percent Y-o-Y to Rs 1,643.65 crore in the quarter gone by.

"For the quarter ended June 2013, operations at two units of Haldia plant were suspended due to disruption in supplies of Phos acid, which subsequently resumed in min-June 2013," the company reasoned for lower sales in fertiliser segment.

Consolidated earnings before interest, tax, depreciation and amortisation dropped 18.6 percent on yearly basis to Rs 512 crore and operating profit margin fell 320 basis points Y-o-Y to 12 percent during September quarter.

"There was one-time gain of Rs 152.4 crore on termination of supply contract and provision in respect of dues from regulatory agencies which have been contested by the group Rs 16.06 crore," the company said in its release.

Finance cost of the company increased to Rs 179.37 crore in September quarter from Rs 114.44 crore in a year ago period.

At 15:06 hours IST, the stock was trading at Rs 265.65, down 1.65 percent on the BSE.