India's Tata Chemicals posts 62% rise in Q4 profit on strong demand
03/05/2023 12:46
BENGALURU, May 3 (Reuters) - India's Tata Chemicals Ltd
TTCH.NS posted a 62% jump in fourth-quarter profit on
Wednesday, helped by demand for products such as soda ash,
bicarbonate and salt.
The chemical manufacturer's consolidated net profit rose to
7.09 billion rupees ($86.7 million) in the three months ended
March 31, from 4.38 billion rupees a year ago.
India, the world's sixth-largest chemical producer, has seen
rapid growth, reaping the benefits of many countries and
companies looking for alternative sources due to top supplier
China's COVID-related supply chain issues.
The basic chemistry products segment, which contributes to
more than 85% of revenue jumped 31.7%, while input costs fell
12.1% to 6.30 billion rupees.
Basic chemistry products include soda ash, sodium
bicarbonate, salt and marine chemicals, which are widely used in
paints, detergents, insecticides, among others.
"We expect (the) sustainability trend will drive the demand
for newer applications like solar glass and lithium which will
fuel growth," R. Mukundan, the company's managing director and
chief executive, said.
Tata Chemicals expects the global demand-supply situation to
remain balanced over the medium term, Mukundan said.
The Mumbai-based company reported a 26.6% rise in its
consolidated revenue to 44.07 billion rupees.
Rallis India Ltd RALL.NS , Tata Chemicals' agri-input
manufacturing unit, posted a wider fourth-quarter loss of 691.3
million rupees due to one-off expenses related to its seeds
business.
Tata Chemicals' shares closed up 2.2% at 993.1 rupees on
Wednesday ahead of the results. They rose 4.8% in 2022.
($1 = 81.7900 Indian rupees)
(Reporting by Anuran Sadhu in Bengaluru; Editing by Sonia
Cheema)
((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))