Tata Chemicals Ltd. has announced fall in net profit for its fourth quarter and full-year ended 31 March.
The company’s consolidated net profit slumped 48% to Rs 197.56 crore ($26.1 million) in fourth quarter 2019-20 compared to prior year quarter’s Rs 383 crore ($50.6 million).
Revenue from operations declined 7% to Rs 2,378.09 crore ($314.3 million) in the quarter compared with Rs 2,561 crore ($338.5 million) in the prior year quarter.
“The pandemic impacted some parts of our operations and supply chain during the quarter. Nevertheless we are also looking at this as an opportunity to improve our operating capabilities and review our growth strategy,” Tata Chemicals Managing Director and CEO R Mukundan said.
“In India, Mithapur has been producing all products with additional emphasis on salt and bicarb as both these products fall under essential commodities,” he added. The company would continue to monitor market demand and ensure agility in its operations with renewed focus on product supply, cash position, and optimal capital expenditure spends, and reduction in fixed costs, he said.
“As the world recovers from the pandemic situation, safety of our employees, our extended value chain partners and the communities around which we operate will remain our focus areas while we continue to work closely with our customers enabling them to get back on track at the earliest,” he added.
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 2019-20 was almost flat at Rs 10,357 crore ($1.369 billion) as against Rs 10,337 crore ($1.366 billion) in 2018-19.
Full-Year Segment-wise Results
Revenues in the Basic chemistry products segment fell 4% to Rs 8013.74 crore ($1.059 billion) from Rs 8309.05 crore ($1.098 billion) the prior year. The decline is attributable to weak sales in fourth quarter due to the coronavirus pandemic.
However, net profit from the segment rose 4% to Rs 1355.51 crore ($179.2 million) from Rs 1303.61 crore ($172.3 million) the prior year on strong margins.
Revenues in the Specialty products segment rose 15% to Rs 2328.85 crore ($307.8 million) from Rs 2026.29 crore ($267.8 million) the prior year.
Net profit from the segment fell 3% to Rs 166.9 crore ($22.1 million) from Rs 172.13 crore ($22.8 million) the prior year.