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Tata Chemicals: Operating margins catalyze strong profit growth - Views on News from Equitymaster
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  • Aug 18, 2016 - Tata Chemicals: Operating margins catalyze strong profit growth

Tata Chemicals: Operating margins catalyze strong profit growth
Aug 18, 2016

Tata Chemicals has announced its June quarter results. The company has reported consolidated topline fall of 9% YoY while the bottomline has grown 40% YoY.

Performance summary
  • Consolidated topline for the quarter falls 9% YoY, standalone topline falls 17% YoY
  • Operating margins on a consolidated basis expand by 3.5%, leading to a 15% growth in operating profits
  • Bottom line grows 40% YoY on the back of good operating performance and more than four-fold jump in other income
  • Standalone bottomline grows 21% YoY on the back of a 17% fall in topline.

    Consolidated Standalone
    (Rs m) 1QFY16 1QFY17 Change 1QFY16 1QFY17 Change
    Net sales 39,989 36,519 -8.7% 23,528 19,532 -17.0%
    Expenditure 34,615 30,360 -12.3% 20,594 16,039 -22.1%
    Operating profit (EBDITA) 5,375 6,159 14.6% 2,934 3,493 19.1%
    EBDITA margin (%) 13.4% 16.9% 12.5% 17.9%
    Other income 102 446 338.7% 482 596 23.7%
    Interest (net) 1,451 1,201 -17.2% 675 728 7.8%
    Depreciation 1,380 1,443 4.6% 507 504 -0.5%
    Profit before tax 2,645 3,961 49.8% 2,234 2,857 27.9%
    Extraordinary items 0 0
    Tax 642 1,051 63.7% 552 827 49.9%
    Profit after tax/(loss) 2,003 2,909 45.3% 1,682 2,030 20.7%
    Share of loss of associate -111 113 -201.9% 0 0
    Minority Interest 638 734 15.2% 0 0
    Net profit after minority interest 1,476 2,062 39.8% 1,682 2,030 20.7%
    Net profit margin (%) 3.7% 5.6% 7.1% 10.4%
    No. of shares (m) 254.8 254.8 254.8 254.8
    Diluted earnings per share (Rs)* 32.9
    Price to earnings ratio (x)* 15.5

    (* on trailing twelve months earnings)

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