Tata Chemicals Faces Profit Slump Amid Soda Ash Surplus
Tata Chemicals reported a 60% drop in net profit for the September quarter, with revenue also seeing a decline. The soda ash market remains oversupplied and pricing pressures persist. Despite market challenges, the company highlights its resilience through strategic cost management and a focus on high-volume and value-added products.
- Country:
- India
Tata Chemicals experienced a significant decline in its consolidated net profit down to Rs 77 crore for the September quarter, marking a 60% fall year-over-year. The company's profit previously stood at Rs 194 crore during the same quarter last year, as per regulatory filings.
The revenue from operations also saw a drop of 3.05% reaching Rs 3,877 crore compared to Rs 3,999 crore in the previous fiscal year. The oversupply in soda ash markets has led to weakened prices and persistent demand-supply imbalances, according to Tata Chemicals Managing Director and CEO, R Mukundan.
Despite these market headwinds, the company's standalone performance remained robust, driven by higher sales volumes and strategic cost management. R Mukundan noted the completion of reconfiguration efforts in the UK, emphasizing a focus on value-added non-cyclical products to bolster future stability.
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