Tata Chemicals: net profit up 44% on increased sales

TATA Chemicals Ltd. (TCL) reported a 44.35% rise in after tax profit for the quarter ended 30 September 2005 to INR 1.25 billion against INR 871.9 million in the year-ago period. Net sales/income from…

TATA Chemicals Ltd. (TCL) reported a 44.35% rise in after tax profit for the quarter ended 30 September 2005 to INR 1.25 billion against INR 871.9 million in the year-ago period. Net sales/income from operations rose 36.69% to INR 9.96 billion (INR 7.29 billion). For the 1H of 2005-2006, the company posted a 43.64% increase in profit after tax to INR 1.90 billion (INR 1.32 billion) on a 20.57% gain in net sales/income from operations to INR 15.06 billion (INR 12.49 billion). “Our strong business performance is a result of enhanced sales volumes, improved price realisations and a concerted thrust on control of prices of various inputs as well as sales and distribution costs.” “The external environment is becoming increasingly conducive with encouraging demand growth, especially in the chemicals business. Concerns, however, remain with regard to the settlement of phosphoric acid prices,” Mr Prasad Menon, Managing Director, TCL, said. According to an official statement, the company had a domestic market share in soda ash of 33.7% during the 1H 2005. On an overall basis (including imports), its market share was 31.9%. Domestic demand for soda ash grew at 4.3% year-on-year with the firm“s 1H sales volume rising 12.3%. Soda ash sales volume for the 2Q 2005 was 150,000 tonnes, taking volume for the year to 275,000 tonnes. Export of soda ash in the 1H 2005 reached 56,000 tonnes, with 30,000 tonnes in the 2Q. On 1 October 2005, prices of soda ash were increased by an average of INR 400 per tonne. (Figures in parentheses refer to the year-ago period)