TATA Chemicals Reports 30% Decline In Net Profits

Tata chemical, has announced its Q1FY14 results on 5th August, 2013. The company's revenues have seen growth of 9% to Rs 3366.64 crore in Q1FY14 against Rs 3093.59 crore of Q1FY13. While the net profit of company has declined by 30% in same duration to stand at Rs 75.21 crore as of Q1FY14.

The company has three main segments, ie. Inorganic Chemical, Fertilizers and Agri Inputs. On a yearly basis, the revenues from Inorganic Chemicals remained flat to Rs 1869 crore against Rs 1865 crore. In the Fertilizers segment, revenue improved by 21% and stood at Rs 844 crore on YoY basis. While the Agri Input segment grew highest among the segments with 23% growth to Rs 552 crore on yearly basis.

EBITDA margin of the company dropped by 377 basis point to 12.22% in Q1FY14 as against 15.99% in Q1FY13. Rallis India, the subsidiary of the company reported improved EBITDA of 12% due better performance of the its subsidiary Metahalix.

The operation in the two units at Haldia plant was suspended due to disruption in the supply of Phos Acid which resumed in mid June 2013. Agri and Trading fertilizers business volume was impacted due to volatile exchange rates .

Currently, the stock of the company is trading at Rs 259.60. Looking at the results, we suggest that investors stay away from the counter.