Tata Chemicals Q4 Results: Co in red after 9 years on one-time charge, poor soda ash demand
India's Tata Chemicals reported its first quarterly loss in nine years on Monday, hurt by a one-time charge incurred in its UK operations along with lower prices and demand of soda ash.
India's reported its first quarterly loss in nine years on Monday, hurt by a one-time charge incurred in its along with lower prices and of . It reported a consolidated net loss of 8.5 billion rupees ($101.9 million) in the ended March 31, compared to a profit of 7.09 billion rupees year ago. said it incurred a non-cash write down of assets aggregating to 9.63 billion rupees as an exceptional loss in respect of its UK operations.Revenue from operations fell 21% to 34.75 billion rupees, making it the company's third consecutive quarter of decline. For further results highlights, click KEY CONTEXT Soda ash - which amounts to two-thirds of Tata Chemicals' total sales volume - is facing lower demand as falling caustic soda prices make it more appealing for the silicate market, prompting the company to cut prices of its soda ash products at least five times since April 2023.
According to analysts at Emkay Research, prices of soda ash have fallen by 21% in the March-quarter from a year ago. The chemical is used to reduce the melting point of silica to produce glass, along with the soap and detergent industries.
Tata Chemicals is the world's third-biggest soda ash producer, according to its website and analysts at HSBC.
PEER COMPARISON Valuation(next Estimates (next Analysts' sentiment 12 months) 12 months) RIC PE EV/EBIT Revenue Profit No. of Stock to Div DA growth growth rating analysts price (%) (%) * target** (%) Tata 28.64 12.49 -0.37 -20.64 Sell 7 1.27 1.56 Chemicals Ltd Deepak 32.96 21.16 12.41 29.56 Hold 15 1.08 0.30 Nitrite Ltd SRF Ltd 40.83 22.77 18.23 43.44 Buy 25 1.05 0.27 GHCL Ltd 6.13 3.73 7.44 4.24 Buy 1 0.81 3.29 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT JANUARY-MARCH STOCK PERFORMANCE -- All data from LSEG -- $1 = 83.4433 rupees
Source: Stocks-Markets-Economic Times
