On Thursday (October 17), Tata Chemicals Ltd announced a 46.1% year-on-year (YoY) decline in net profit to ₹267 crore for the second quarter ended September 30, 2024.
According to regulatory filings, Tata Chemicals reported a net profit of ₹495 crore in the previous fiscal quarter. The company’s revenue from operations remained stable at ₹3,999 crore compared to ₹3,998 crore in the previous fiscal year.
EBITDA in the second quarter of this fiscal declined by 24.5% to ₹618 crore from ₹819 crore in the same period last year.
In the reporting quarter, the EBITDA margin was 15.5%, lower than 20.5% in the same period last fiscal. EBITDA is earnings before interest, tax, depreciation and amortization.
Tata Chemicals operates India’s third largest soda ash manufacturing plant. Kapilram Vakil (grandson of the late Indian Justice Nanabhai Haridas) set up India’s second soda ash plant, which began operations in 1944.
The company reported sustained demand across all end-use industries in India during the second quarter. It claimed strong demand for flats, containers and solar glass. However, imports declined during the same period, according to the investor presentation.
In contrast, demand in the US declined, while demand in Europe remained marginal. Despite these headwinds, Tata Chemicals reported a 6% sequential revenue growth in the quarter, led by higher soda ash volumes and realisations. Moreover, Ebitda grew 8% between July and September compared to the previous quarter, mainly led by higher margins in the United States, Kenya and Rallis.
