Mumbai, February 3, 2025 – Tata Chemicals Limited (NSE: TATACHEM, BSE: 500770) has announced its financial results for the third quarter (Q3) and nine months ended December 31, 2024.
Key Financial Highlights (Consolidated)
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 | FY24 (Audited) |
|---|---|---|---|---|---|---|
| Revenue from Operations | ₹3,590 Cr | ₹3,999 Cr | ₹3,730 Cr | ₹11,378 Cr | ₹11,946 Cr | ₹15,421 Cr |
| Total Income | ₹3,618 Cr | ₹4,107 Cr | ₹3,768 Cr | ₹11,561 Cr | ₹12,118 Cr | ₹15,707 Cr |
| EBITDA | ₹469 Cr | ₹726 Cr | ₹578 Cr | ₹1,809 Cr | ₹2,468 Cr | ₹3,218 Cr |
| Profit Before Tax (PBT) | ₹(4) Cr | ₹348 Cr | ₹262 Cr | ₹613 Cr | ₹1,626 Cr | ₹830 Cr |
| Net Profit (PAT) | ₹(21) Cr | ₹267 Cr | ₹194 Cr | ₹421 Cr | ₹1,267 Cr | ₹449 Cr |
| Earnings Per Share (EPS) | ₹(2.08) | ₹7.61 | ₹6.20 | ₹11.42 | ₹43.88 | ₹10.52 |
- Revenue Decline: The company reported a YoY revenue decline of 3.8%, primarily due to lower realizations and demand softness in some markets.
- Profitability Pressure: The net loss of ₹21 Cr was attributed to higher expenses and an exceptional item of ₹70 Cr related to the planned closure of the Lostock Soda Ash plant in the UK.
- Exceptional Items: Losses included ₹70 Cr in restructuring costs for UK operations. However, gains of ₹20 Cr from discontinued operations were recorded.
Segment-Wise Performance
| Segment | Q3 FY25 Revenue | Q2 FY25 Revenue | Q3 FY24 Revenue | 9M FY25 Revenue | 9M FY24 Revenue |
|---|---|---|---|---|---|
| Basic Chemistry | ₹3,031 Cr | ₹3,040 Cr | ₹3,101 Cr | ₹9,043 Cr | ₹9,608 Cr |
| Specialty Products | ₹562 Cr | ₹962 Cr | ₹629 Cr | ₹2,343 Cr | ₹2,340 Cr |
- Basic Chemistry Segment: Revenue remained flat QoQ, reflecting steady soda ash and bicarbonate sales but with pricing pressure.
- Specialty Products: The segment saw a sharp QoQ decline due to lower demand for agrochemicals.
Key Financial Ratios
| Ratio | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 |
|---|---|---|---|---|---|
| Operating Margin (%) | 4.29% | 8.53% | 7.94% | 7.00% | 14.19% |
| Net Profit Margin (%) | (0.58%) | 6.68% | 5.20% | 3.70% | 10.61% |
| Interest Service Coverage | 2.93x | 4.26x | 4.11x | 3.82x | 6.01x |
| Debt-to-Equity Ratio | 0.30 | 0.28 | 0.25 | 0.30 | 0.25 |
- Margins have declined YoY, with operating margin contracting from 14.19% (9M FY24) to 7.00% in 9M FY25.
- Debt-to-equity ratio rose slightly to 0.30x, indicating a higher leverage.
Corporate Announcements
- UK Operations Restructuring: The company announced closure of its Lostock Soda Ash plant in the UK due to sustained financial underperformance.
- Exceptional Gains: ₹20 Cr gain recorded from revised government subsidy for discontinued fertilizer business.
- Tax Adjustments: A ₹154 Cr deferred tax liability charge was booked due to increased tax rates on certain assets.
Management Commentary
R. Mukundan, Managing Director & CEO, stated:Strategic Outlook
- Soda Ash Market: Global soda ash pricing remains volatile; recovery expected in H2 FY25.
- Cost Optimizations: Continued cost rationalization and efficiency programs to mitigate margin pressures.
- Growth Focus: The company remains committed to specialty products and green chemistry investments.