Speaking in an exclusive interview with CNBC-TV18, Tata Chemicals' chief also said that the company is the second derivative supplier to EV battery manufacturers.
Focus on strong operational excellence helped Tata Chemicals witness a 32 per cent growth in its consolidated net profit at Rs 318.39 crore for the quarter ended December despite lower sales.
The company reported net profit of Rs 242.24 crore against a net loss of Rs 74.17 crore in the year-ago period. Total income rose to Rs 4,055.49 crore in the fourth quarter.
The Finance Minister has set the direction for a balanced and inclusive growth emphasising on increasing agricultural productivity, farm income, increasing investment in infrastructure, manufacturing maintaining fiscal discipline as well as raising social spend, says R Mukundan, Managing Director, Tata Chemicals.
On gas price hike, R Mukundan of Tata Chemicals says it will be a pass through for the company. He adds that for price hike to be positive, it needs to be accompanied with increase in supply.
Total income has increased by 7 percent to Rs 4,598.13 crore in the quarter ended December 2013, from Rs 4,311.31 crore in the year-ago period. The Tata group firm's net profit took a beating as its finance costs rose to Rs 165.63 crore from Rs 118.41 crore, while tax expenses increased to Rs 92.61 crore from Rs 73.25 crore in the review period.
In the farm business, the company will increase the non-bulk portfolio such as specialty and high-yield seeds to enhance farm productivity, Tata Chemicals Managing Director R Mukundan said today.
The subsidy outstandings which were around Rs 35,000-40,000 crore have climbed up to over Rs 1 lakh crore. If the same level of subsidy underpayment continue, by next year the industry is expected to face a Rs 165,000-crore outstandings.
New gas ricing regime will help increase domestic output, says Tata Chemicals and calls for increase market price of urea.
Tata Chemicals today said delay in payment of fertiliser subsidy by the government to the tune of Rs 1,496 crore is putting strain on company's balance sheet.
In an interview to CNBC-TV18 R Mukundan, managing director, Tata Chemicals spoke about the latest happenings in the company and the way ahead.
The 72-year-old company is making a strategic shift from just chemicals to water purification and products that promote health and wellness.
Tata Chemicals expects earnings before interest, taxes, depreciation and amortization (EBITDA) of USD 300-350 million from the ammonia-urea fertilizer plant at Republic of Gabon in Africa, Managing Director R. Mukundan said in a conference call Wednesday.
R Mukundan, MD of Tata Chemicals, in an interview on CNBC-TV18 said that the company’s operating performance was impacted due to the sever winter faced in the UK and that the situation on the ground in terms of demand or a pullback in demand was not critical at this point in time.