TATA CHEMICALS POSTS LOSS OF RS 841 CR ON ONE-TIME HIT

Tata Chemicals, the world’s third-largest soda ash producer, posted a consolidated net loss of Rs 841 crore for the quarter ended March, impacted by a one-time charge of Rs 963 crore in its UK operations.

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In comparison, the Tata group company had posted a net profit of Rs 692 crore for the same quarter of previous financial year. Before exceptional items and non-controlling interest, the company’s net profit stood at Rs 145 crore, it said in a regulatory update.

During the quarter under review, the firm’s revenue fell to Rs 3,475 crore from Rs 4,407 crore posted during the same quarter of previous fiscal. The firm’s Ebitda fell to Rs 443 crore from Rs 965 crore posted during year-ago period.

The company’s revenue and Ebitda were impacted due to lower volumes of soda ash and pricing pressure across all regions, it said.

The firm also declared a dividend of Rs 15 a share for FY24.

“Overall demand for soda ash in India stayed stable during the quarter on account of rising demand from the detergent and chemical sectors. During the year, salt production and sales were at the highest level. The European soda ash market remained under pressure due to muted demand and margin pressure leading to one-time non-cash charge of Rs 963 crore in the UK,” Tata Chemicals MD & CEO R Mukundan said.

The company’s overall sales volume grew sequentially from the previous quarter, despite adverse price movement on account of market factors.