Higher sales volumes, efficient
operations drive realisations for Q1 FY2007
July 27, 2006
||Tata Chemicals standalone Q1FY07 Net Sales
up 49 per cent
||Profit from operations up 40 per cent
||PAT Rs. up 16 per cent
Tata Chemicals Limited, a leading manufacturer of chemicals,
fertilisers and food additives, today announced its audited
financial results for the quarter ended June 30, 2006. The
company is the third largest soda ash player in the world,
enjoys leadership in the Indian edible salt market, is the
most efficient manufacturer of urea in the country and also
manufactures phosphatic fertilisers.
Commenting on the company's performance for Q1FY2007, Prasad
Menon, Managing Director, Tata Chemicals, said, "Tata
Chemicals' financial and operating performance during the
quarter under review has been strong. Production and sales
volumes of all our products have increased significantly.
This combined with all round efficiencies and lower input
costs has enabled a healthy increase in realisations. Further,
having ensured consistent availability of inputs and having
commenced the second phase of our efficiency enhancement programme;
I believe Tata Chemicals is optimally positioned to deliver
superior stakeholder value."
The company's income from operations (net of excise) was
higher by 49 per cent at Rs 757 crore from Rs 510 crore. This
increase has been driven by significantly higher sales volumes
across all products. Enhanced fertiliser trading activity
in line with Tata Chemicals' endeavour to enhance its association
with the farmer and become a complete agri solution provider
further improved income from operations.
Profit from operations too grew by a healthy 40 per cent
to Rs 161 crore compared to Rs 115 crore. This increase was
despite a 21 per cent rise in staff costs on account of wage
revisions and provision for retirement benefits.
Profit before tax and net profit after tax were both up 16
per cent at Rs 110 crore and Rs 75 crore despite a net foreign
exchange loss of Rs 24.8 crore incurred during the quarter.
The basic and diluted EPS (for the quarter) was Rs 3.50.
Note: All comparative financials in this communication
are on a Tata Chemicals standalone basis.
Tata Chemicals' market share (including imports) increased
to 33.6 per cent as against 29.4 per cent in Q1 06 on the
back of healthy demand traction. Dense soda ash comprised
32 per cent of total soda ash sales for the quarter under
review. Further, the company exported 17.000 MT in Q1 FY07.
Increasing freight costs combined with a tight supply-demand
balance necessitated a Rs 350 per ton price increase with
effect from June 29.
Market share of Tata Salt at the end of quarter was 51.6 per
cent within the national branded segment and at 22.6 per cent
in the overall iodized salt segment. During the quarter, Tata
Salt was relaunched in a new contemporary pack design which
has been well received across all regions by trade as well
as by consumers.
Urea sales volumes continue to be healthy. Tata Chemicals
remains the most energy-efficient player in the industry with
an energy consumption level of 5.17 Gcal/ton for in Q1 FY07.The
company has submitted an application for the production of
50,000 MT neem-coated urea in the current financial year and
the approval is awaited.
Phosphatics (NPK, Di ammonium
Assured supply of phosphoric acid as a result of the company's
stake acquisition in IMACID Spa enabled significantly higher
DAP and NPK fertiliser sales in the quarter under review.
Interest costs were Rs. 0.77 crore in Q1 FY07, a decline of
60 per cent compared to the corresponding period last year.
Total debt as on June 30, 2006 stood at Rs 1,345 crore of
which low cost short term debt used towards mainly the phosphatics
business was Rs 529 crore.
Note: Some of the statements in this document that
are not historical facts are forward looking statements. These
statements are based on the present business environment and
regulatory framework. We assume no responsibility for any
action taken based on the said information, or to update the
same as circumstances change.