Tata Chemicals Ltd. has announced fall in net profit for its fourth quarter and full-year ended 31 March.
Q4 Results
The company’s consolidated net profit slumped 85% to Rs 290 million ($3.93 million) in fourth quarter 2020-21 compared to prior year quarter’s Rs 1.98 billion ($26.8 million).
Revenue from operations grew 11% to Rs 26.36 billion ($356.9 million) in the quarter compared with Rs 23.78 billion ($321.9 million) in the prior year quarter.
Full-Year Results
For the year ending March 31, 2020, Tata Chemical’s net profit declined 12% to Rs 1,028 crore ($135.9 million) as compared with Rs 1,163 crore ($153.7 million) the prior year.
Full-year revenue in 2020-21 stood at Rs 102 billion ($1.38 billion) as against Rs 103.57 billion ($1.4 bil-lion) in 2019-20.
Commenting on the results, Mr. R. Mukundan, Managing Director & CEO, Tata Chemicals Ltd., said, “During the year, we witnessed a sequential improvement in demand and this quarter saw continuation of the same trend. With the second wave of COVID-19, our priority will be the health and safety of our stakeholders and we are undertaking several initiatives to cater to the well-being of the employees and communities.”
“During the quarter, our profits were muted due to one off in US operations caused by Polar Vortex leading to sharp rise in gas prices. There was one off in UK operations due to tax asset write off, re-financing cost. We are witnessing strengthening of Spot soda ash prices which will ease margin pressures sequentially in the coming quarters,” Mukundan said.
“Going forward, time bound commissioning of capacities in Mithapur and Dahej coupled with growth of Specialty products are critical steps towards transformation of the company,” he added.