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Last Updated : Nov 02, 2018 09:09 PM IST | Source: PTI

Tata Chemicals Q2 net up 17% to Rs 409 cr

The company had posted a profit of Rs 349.59 crore in the corresponding quarter of the previous financial year.

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Tata Chemicals reported a 16.94 percent year-on-year growth in consolidated net profit at Rs 408.82 crore during the quarter ended September.

The company had posted a profit of Rs 349.59 crore in the corresponding quarter of the previous financial year.

Tata Chemicals managing director R Mukundan told reporters that the profit is from the "continuing operations" of the company.

The total income, which includes revenue from operations and other income, grew by 12.55 percent during the quarter under review to Rs 3,084 crore, against Rs 2,740 crore last year.

The company's income from operations for basic chemistry products grew by 7 percent to Rs 2,033 crore, the consumer products segment by 22 percent to Rs 460 crore and specialty products by 12 percent to Rs 669 crore.

"We are pleased to share a good overall performance across all three businesses. India's basic chemistry products business continues to register a robust performance, due to operational efficiencies, a robust product mix and better realisations," said Mukundan.

On the global front, adverse impact on North American operations was partially offset by better sales realisation, he added.

The chemicals business has been the key pillar of the company and the soda ash facility expansion at Mithapur in Gujarat aims to lend further strength and sustainability to the business, he said.

"With the intended expansion at Mithapur, we would substantially raise our manufacturing capacity of soda ash and edible salt by 20 percent and 40 percent, respectively. This expansion will be achieved without any additional carbon generation by focusing on energy from waste heat, solar and wind," said Mukundan.

The company's board has approved a capital expenditure of Rs 2,400 crore, which would be deployed towards de-bottlenecking of Mithapur facility.

"The capex will be spread over three years and the initial funds will be done through internal accrual after which we will take a decision on how to raise the rest," he added.

The consumer products business continues to be led by growth of iodised salt, pulses and spices, coupled with entry into new categories, according to Mukundan.

The company, he said, is excited at the opportunities in the specialty business and are exploring a foray into lithium energy storage solutions.

The market in India for these applications could be 40-60 GWh by 2025, he said, adding "We are in discussions with multiple technology and equipment providers. The plans will be firmed up in the next financial year."

Mukundan said the nutraceuticals plant in Nellore, Andhra Pradesh and the Silica facility in Cuddalore, Tamil Nadu are on schedule.

"These, together with the intended capacity expansion at Mithapur, would bring into operation our overall investments of about Rs 2,800 crore," he added.

The company's scrip ended on November 2 up 1.24 percent at Rs 695.80 apiece on the BSE, against 1.68 percent increase in the benchmark.
First Published on Nov 2, 2018 08:58 pm
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