Tata Chemicals reported 10% increase in its consolidated net sales for the quarter ended December 2018 to Rs 2831.87 crore compared to corresponding previous year period and net profit of the company was down 60% to Rs 219.47 crore compared to Q3FY'18.

The Company's results by reporting segment showed Income from operations for Basic Chemistry Products at Rs 2141.73 crore, up by 10%, Consumer Products segment at Rs 470.9 crore, up by 17% and Specialty Products Rs 429.18 crore, up by 8%.

Operating margin of the company fell 520 bps to 16.6%. Operating profit as a result decreased 16% to Rs 471.23 crore. Cost of material consumed as a percentage of net sales (net of stock adjustment) rose 460 bps to 16.1% while purchase of stock in trade increased 90 bps to 5.1%. Employee benefit expense fell 50 bps to 12%. Freight and forwarding charges increased 150 bps to 16.6%. Power and fuel expenses were higher by 80 bps to 13.7% and other expenses decreased 80 bps to 20.2%.

Other income rose 460% to Rs 96.07 crore while interest cost increased 9% to Rs 97.22 crore while depreciation rose 12% to Rs 144.05 crore. PBT before EO was down 10% to Rs 326.02 crore.

The company had EO expense of Rs 27.54 crore pertaining to management's estimate of the increase in pension liability for the Group's UK entities, due to a recent High court ruling in the UK with respect to Guaranteed Minimum Pension (GMP) equalization compared to net EO income of Rs 59.57 crore related to actuarial gain on changes to certain post retiral medical plans for TATA Chemicals North America (TCNA) operations. PBT after EO fell 29% to Rs 298.48 crore.

The company had tax expenses of Rs 71.59 crore compared to net tax credit of Rs 187.43 crore mainly due to repeal of alternative minimum tax in recent US tax legislation changes allowing recovery of previously unrecognized tax payments. PAT decreased 63% to Rs 226.89 crore. Considering share of profit or loss in associate and JV, Bottomline decreased 60% to Rs 219.47 crore.

For 9MFY'19 Tata Chemicals reported 11% increase in its consolidated net sales to Rs 8536.94 crore compared to corresponding previous year period while net profit of the company was down 23% to Rs 755.17 crore compared to 9MFY'18.

Operating margin fell 340 bps to 18.3%. Operating profit as a result decreased 7% to Rs 1564.21 crore.

Other income increased 280% to Rs 325.77 crore while interest cost increased 16% to Rs 278.02 crore while depreciation was up 10% to Rs 420.89 crore. PBT before EO was up 4% to Rs 1191.06 crore. The company had EO expense of Rs 27.54 crore compared to net EO income of Rs 59.57 crore. PBT after EO fell 3% to Rs 1163.52 crore.

Tax expenses was Rs 317.29 crore compared to Rs 25.02 crore PAT fell 28% to Rs 846.23 crore. Considering share of profit or loss in associate and JV, Bottomline rose 23% to Rs 755.17 crore.

Mr. R. Mukundan, Managing Director, Tata Chemicals Ltd., said, Our Basic Chemistry Products business witnessed sustained demand across all markets. Indian operations registered a good performance on the back of operational efficiency despite challenges of higher energy costs. On the global front, there was tepid performance from the UK and US operations due to power outage and reducing production in the US, along with adverse sales mix and higher energy costs in the UK. Magadi operations registered a good overall performance.

The Consumer Products business reported a 17 percent growth on the back of higher volumes from all three categories - Salt, Pulses and Spices. The business continued expansion with the introduction of two new categories under the Tata Sampann umbrella brand that promises wholesome nourishing foods. Bran Rich Basmati Rice and Red Rice Poha are the latest addition to the portfolio. We continue to focus on improving our market reach and availability for these products.

In line with our growth focus on Specialty business, we are upgrading the Silica facility to enhance its operational readiness to consistently produce high quality products that meet customer requirements. We look forward to commission both, Nellore and Cuddalore facilities in 2019.

We are pleased to collaborate with the CSIR-CECRI & C-MET to develop technologies for lithium energy storage solutions and are excited at the potential this sector has in India going forward. In the Nutritional solution business, we are very much on-track to deliver on our stated strategy for the business.

The Chemicals business, comprising of the Basic Chemistry and Specialty Products, and the Consumer business continue to be the two pillars of the Company. Innovation, Digitisation and Sustainability continue to be the key pivots in our transformation journey.

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Tata Chemicals: Consolidated financial Results

Tata Chemicals: Standalone financial Results

Tata Chemicals: Consolidated Segment Revenue