May 18, 2018

Tata Chemicals' consolidated profit from operations for Q4 FY 17-18 at Rs356 crore, up by 23 percent

  • Q4 standalone net profit from stood at Rs175 crore, up by 65 percent
  • Recommends dividend of Rs22 per share (including special dividend of Rs11 per share)  

Tata Chemicals group (the ‘company’) today declared its consolidated financial results for the full year (FY17-18) and fourth quarter ended March 31, 2018. For FY17-18, the company reported an income from operations on consolidated basis at Rs10,345 crore, with net profit at Rs1,560 crore, up 39 percent and income from operations at Rs3,524 crore, with net profit at Rs624 crore, up 8 percent on a standalone basis. For the quarter ended March 31, the company reported consolidated income from operations at Rs2,555 crore, standalone income from operations reported at Rs918 crore.

Standalone Q4 FY17-18 

  • Soda Ash and Salt in India continue to perform with healthy margins due to improved operational efficiencies despite stiff competition and higher input price.
  • Tata Salt recorded highest ever production volumes.
  • Urea transaction consummated on Jan 12, 2018. Profit before tax of Rs1,279 crore reported as exceptional item.
  • Phosphatic fertiliser business has been classified as discontinued operations. 

Consolidated Q4 FY17-18 

  • US operations continue to perform better on the back of improved production and sales volumes, along with better utilisation and efficiency.
    • One-off impacts on performance include actuarial gain on changes to post retiral medical plans and recent changes in tax legislation.
  • European operations back on track after some operational disturbance earlier this year.
  • Magadi operations reported higher sales volumes, better operational efficiency and sales realisation.
  • Consolidated net debt down from Rs5,573 crore in Mar 17 to Rs1,860 crore.

Other Highlights 

  • On a Standalone basis, the company is ‘Net Cash Positive’.
  • Gross subsidy receivable as at Mar 31, 2018, at Rs859 crore vs Rs1,524 crore as on Dec 31, 2017.
  • Consumer product portfolio continues expansion under the Tata Sampann umbrella brand with the introduction of organic pulses and nutrimixes. 
  • TCL continued to be a market leader in the national branded salt segment.
  • Tata Salt’s ‘Sehat Ki Chuski’ campaign received global recognition at the MAA Worldwide Globes Awards.

Dividend 
The board of directors has recommended a dividend of Rs11 per share and a special dividend of Rs11 per share to reflect the sale of the fertiliser business, aggregating to Rs22 per share.

Executive Comments 
R Mukundan, managing director, Tata Chemicals, said, "We are pleased to share a good overall performance despite some challenges. The overall operational efficiency continued its upward path and performance was on expected lines across all geographies. The Indian Chemicals business registered a robust performance and the recently launched MediKarb, a pharma-grade bicarb was well received in the market. On the global front, our North American and Kenya operations are now performing well. UK showed steady performance despite operational disturbances earlier this year. 

“The consumer business, through Tata Salt, continued its leadership in the national branded salt segment. The year also witnessed the launch of new products under the Tata Sampann brand; namely multigrain khichdi mix, nutrimixes and a range of organic pulses.

“In the speciality business, the company seeded two businesses, a nutraceuticals and highly dispersible Silica business. Our agrochemicals subsidiary, Rallis registered steady performance and the seeds business in Metahelix continues its growth trajectory. 

“We have successfully completed our first stage of transformation with the exit from fertiliser business, and the company is poised for growth with a transformation agenda built on innovation, sustainability and digitisation. Our future growth drivers are going to be the consumer and speciality businesses."