Tata Chemicals reports 85% decline in consolidated profit after tax (PAT) at Rs 290 m for the quarter ended March 2021.
The consolidated PAT of the company stood at Rs 2 bn for the corresponding period of the previous fiscal year.
On a standalone basis, PAT for the quarter ended March 2021 stood at Rs 1.2 bn, as compared to Rs 1.1 bn of the corresponding quarter of last year.
For the full year (FY21), consolidated PAT stood at Rs 4.4 bn, down by 58%, as compared to Rs 10.3 bn for the corresponding last year.
PAT for the year ended March 2021, on standalone basis stood at Rs 4.8 bn, down by 29%, as compared to Rs 6.7 bn for the corresponding last year.
On a consolidated basis, the income from operations rose by 11% to Rs 26.4 bn during the quarter under review compared to Rs 23.8 bn in the corresponding period of 2019-20.
For the financial year 2021, the company's income from operations stood at Rs 102 bn, as compared to Rs 103.6 bn in the last year.
On a standalone basis, for the quarter, the income from operations rose by 15% to Rs 8.4 bn, as compared to Rs 7.3 of the corresponding quarter of last year.
The company's standalone revenue from operations rose by 3% to Rs 30 bn for the fiscal year 2021, as compared to Rs 29.2 bn in the previous year.
Basic Chemistry Products: Revenue at Rs 7.9 bn (up 13%), operating profits were marginally down at Rs 1.9 bn (margin 23%) in FY21, down from Rs 2bn (margin 28%) versus the last year.
Overall margins were marginally impacted due to lower sales realisation despite improved sale volumes across product portfolio.
Specialty Products: Specialty products business in India had a good and encouraging last quarter for FY21.
Revenue increased for the quarter to Rs 490 m (up by 59%), on the back of increasing volumes across products portfolio.
Overall for FY21, revenue increased to RS 1.5 bn (up 106%) versus Rs 740 m recorded in the previous year.
Commenting on the results, Mr Mukundan, MD & CEO of Tata Chemicals said -
Rs in bn | 21-Mar | 20-Mar | Change % |
---|---|---|---|
Total Income | 26.40 | 2,378.09 | 10.9% |
Operating Profits | 0.9 | 2.3 | -59.7% |
Net Profit | 0.1 | 64.2 | -99.8% |
Diluted EPS | 0.5 | 2.5 | |
Operating Margins | 3.5% | 9.5% | |
Net Margins | 0.5% | 270% |
For the year ending 31 March 2021, the company's board of directors has recommended an equity dividend of 100% of face value of Rs 10 each on equity shares.
We reached out to Tanushree Banerjee, Co-Head of Research at Equitymaster, and Editor of the premium stock recommendation service, StockSelect, for her view on the company.
Here's what she has to say -
Shares of Tata Chemicals opened the day at Rs 752 (down 3.4%) on the BSE and Rs 750 (down 4.2%) on the NSE.
At its current price, it's trading at a P/E of 2.8.
The share also touched its 52-week high of Rs 834 and 52-week low of Rs 197 on 8 April 2021 and 23 March 2020.
Over the last 30 days, the Tata Chemicals share price is down 2.9%. Over the last one year, the company's share price is up 158.2%.
Tata Chemicals is a global company with interests in businesses that focus on Basic Chemistry Products and Specialty Chemistry Products.
The story of the company is about harnessing the fruits of science for goals that go beyond business.
The company's Basic Chemistry product range provides key ingredients to some of the world's largest manufacturers of glass, detergents, and other industrial products.
Tata Chemicals currently is the world's third largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa, and North America.
The company has a strong position in the crop protection business through its subsidiary company Rallis India.
It has established world class research and development (R&D) capabilities with a dedicated band of research and scientific personnel working at its facilities in Pune and Bangalore in the emerging areas of material sciences, nutritional sciences, nanotechnology, biotechnology, and agriculture sciences.
For more details about the company, you can have a look at Tata Chemicals factsheet and quarterly results on our website.
You can also compare Tata Chemicals with its peers -
Tata Chemicals vs Rallis India
Tata Chemicals vs Gujarat State Fertilizers
Tata Chemicals vs Deepak Fertilisers
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1 Responses to "Tata Chemicals Shares Tumble Over 7% After Q4 Earnings"
Chandrashekhar Shrikantiah
May 5, 2021This looks to be knee jerk short term reaction . The stock will certainly come back on growth trajectory in short span of time.