Tata Chemicals: net profit drops

Tata Chemicals, the world“s second-largest soda ash manufacturer, reported a consolidated net profit of INR 164.6 crore for the quarter ended December 2010, a 22.5% decrease, compared with INR 212.4 …

Tata Chemicals, the world“s second-largest soda ash manufacturer, reported a consolidated net profit of INR 164.6 crore for the quarter ended December 2010, a 22.5% decrease, compared with INR 212.4 crore in the same period of the previous year. Net sales totalled INR 2,860 crore, 9% higher than the net sales in the corresponding quarter of the previous financial year at INR 2,622.2 crore. On a standalone basis, the company reported a net profit of INR 132.7 crore for the quarter, up 29% compared with INR 102.6 crore in the year-ago period. Turnover increased 15.3%, at INR 1,756 crore, compared to INR 1,522 crore in the corresponding quarter of the previous financial year. According to company officials, even if domestic demand for Tata Chemical“s main products, soda ash and sodium bicarbonate, increased 5% and 9% respectively, rising input (coal, coke and limestone) costs continue to exert pressure on the performance of the company. We continue to see pressures of increasing input prices. The unfortunate weather events in Australia and Indonesia will put even greater pressure on energy prices. We are working towards price increases to negate this impact, said Tata Chemicals managing director R. Mukundan. The company intends to spend over USD 100 million (INR 450 crore) to expand its soda ash manufacturing capacity by four lakh tonnes, officials said.