Tata Chemicals’ consolidated revenue from operations is Rs2,609 crore, up by 11 percent in Q2 FY2021 as compared to Q1 FY2021

Standalone revenue from operations for the period stood at Rs717 crore

Mumbai: Tata Chemicals (TCL) today declared its financial results for the quarter ended September 30, 2020. The company reported income from operations on consolidated basis at Rs2,609 crore, up by 11 percent as compared to Rs2,348 crore of June quarter of FY2021. PAT reported on consolidated basis at Rs132 crore, up by 78 percent, as compared to Rs74 crore of the June quarter of FY2021.

On a standalone basis, the income from operations rose by 14 percent to Rs717 crore, as compared to Rs628 crore of June quarter of FY2021. PAT on standalone basis was Rs135 crore, up by 24 percent, as compared to Rs109 crore for June quarter of FY2021.

The company’s results by reporting segment showed income from operations for the Basic Chemistry Products at Rs1,839 crore, up by 10 percent, and Specialty Products at Rs766 crore, up by 13 percent, as compared to June quarter of FY2021.

Commenting on the results, R Mukundan, managing director and CEO, Tata Chemicals, said, “With the country gradually reopening, we are witnessing the revival of the chemical sector and customer demand. Our plant operations and capacity utilisation have gained momentum and are getting back to the pre-COVID levels. While we are scaling up our operations and ensuring business continuity, the health and safety of our employees and customers will remain our priority. In the coming quarters, we are aiming to move up the value chain with our business strategy concentrating on four verticals -- performance materials, nutritional sciences, agro sciences and energy sciences, while maintaining cash flow and cash balances.”

Standalone highlights Q2 FY2021

• Standalone revenue operations were up as compared to Q1 FY2021.
• Operating margins were subdued due to unprecedented heavy rains; there was flooding leading to higher production cost and one-time expenditure of Rs11 crore due to damages to inventory and other assets.
• Annual wage settlement pertaining to workmen has led to increase in gratuity benefit provision by Rs14 crore.
• Nutritional Solutions business witnessed a steady growth in revenue and is consistently gaining traction in the market from customers.
• Silica Business continues to gain traction for its food and non-food grade silica products.
• Expect to accelerate customer engagement having received good responses from some of the major OEMs.
• Three significant patents were granted to Tata Chemicals Innovation Centre.

Consolidated highlights Q2 FY2021

• US domestic volumes Y-O-Y basis remained resilient, but export market faced some challenges. On the other hand, Q-O-Q basis, both domestic and export markets are gaining momentum.
• Europe operations remained steady and margins remained consistent.
• Operational cash conversion remained robust at Rs586 crore for the quarter.
• Kenya witnessed lower sales volume, resulting in a dip in the revenue.
• Rallis had a steady quarter with improved business from domestic and seeds business, which were partly impacted by lower volumes in international business.

Performance Materials

• Soda ash witnessed a surge in demand from most sectors due to revival of end-use segment.
• Demand for cement in Q2 faced challenges due to heavy monsoon and flooding in many areas.
• The specialty silica plant is coming back to normalcy and operating rates have started improving along with significant progress in the automation of the plant.

Nutritional Solutions

• Demand from the edible salt sector was very high and witnessed a significant growth.
• Sodium bicarbonate demand also witnessed a strong demand especially from food, feed and pharma sectors.
• Tata NQ witnessed strong sales of Fossence in Southeast Asian markets and a new variant of low bulk density Fossence® has been introduced in Q2.
• Improved volume of complementary ingredients witnessed due to an increase in demand in the health and wellness sector.
• Capacity utilisation and operations of Mambattu plant are coming back to the pre-COVID level.

Energy Solutions

• TCL is progressing in pioneering India's first sustainable circular economy in Li-ion batteries -- including battery recycling.

Agro Sciences

• Amidst COVID challenges, shipping, logistics and coordination were in focus.
• Procurement of additional raw material stocks to avert production disruptions.

Awards and accolades

• TCL bagged the prestigious ICC Acharya PC Ray Award for Development of Indigenous Technology for the advancements in nano materials and CSIR Diamond Jubilee Technology Award 2019 for technological innovations in the production of ‘fructo-oligosaccharides’ (Fossence).
• Tata Chemicals ranked third amongst Indian corporates for its sustainability and CSR practices.
• TCSRD was felicitated by the Gujarat State Government on August 15, 2020, for its COVID-19 relief work.