Mumbai: Tata Chemicals recorded an expansion of 33% in profit at Rs 280 crore in the primary quarter of fiscal 2016-17. Its other incomes are higher and lower finance cost helped to grow. In the year before period, profit stood at Rs 211 crore. Revenue depreciated nearly 9% to Rs 3,652 crore, whereas operating margin get better from 13.4% to 17%.
Tata Chemicals, which is into a variety of businesses such as soda ash, salt, pulses and fertilizers, saw a varied performance of its portfolio. Soda ash clocked superior sales while fertilizer accounted inferior volumes. Lower fuel cost assisted in growing the margins of soda ash whereas a temporary blackout of one of its fertilizer units due to elevated raw material cost impacted the fertilizer business. Tata Chemicals MD R Mukundan has also further conveyed in a statement that, the fertilizer business carries on being under pressure due to outstanding subsidy of Rs 1,479 crore. The delayed onset of monsoon impacted the results in the primary quarter; however "we remain positive and expect conditions to get better in the subsequently quarter.
Inorganic chemicals business comprising soda ash and salt is the main contributor to Tata Chemicals revenue. Revenue of its inorganic chemicals unit augmented considerably from Rs 2,172 crore to Rs 2,204 crore in the three months through June in 2016-17. Fertilizers, the subsequent major contributor to the corporation’s revenue, decreased from Rs 1,203 crore to Rs 761 crore.