Tata Chemicals 2Q 2008 net profit jumps 34%

Tata Chemicals reported on 30 October 2008 a 34% jump in net profit for the 2Q 2008 ended 30 September 2008 on the back of improved realisations and healthy demand for soda ash and fertiliser.
The co…

Tata Chemicals reported on 30 October 2008 a 34% jump in net profit for the 2Q 2008 ended 30 September 2008 on the back of improved realisations and healthy demand for soda ash and fertiliser. The company“s net profit in the 2Q 2008 soared to INR 2.780 billion from that of INR 2.08 billion in the same quarter a year ago, Tata Chemicals said. “Both the sectors witnessed healthy demands”, Tata Chemicals MD Homi Khusrokhan told reporters. Revenue for the reporting quarter stood at INR 46.610 billion compared to INR 17.33 billion, recording a year-on-year jump of 169%. “Soda ash prices have continued to be firm”, Mr. Khusrokhan said. However, the company has seen a 7% fall in demand for soda ash in the US market, which was compensated by new markets such as Latin America, he said. The company is expecting US demand to be dull for the next few months, he said, adding there is no slowdown in demand from Europe. Earlier in 2008, the company announced a INR 5 billion capital expenditure for deing projects to reduce bottlenecks. With a global credit crisis looming and a subsequent fear of slowdown, the company has decided to speed up projects that are nearing completion and hold back long gestation projects, Mr. Khusrokhan said. Tata Chemicals is pushing back a few projects for six to eight months, he said.