Tata Chemicals Ltd on Monday (February 3) reported a net loss of ₹21 crore for the third quarter that ended December 31, 2024. This is against a net profit of ₹194 crore in the third quarter of the previous fiscal.
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An exceptional charge of ₹70 crore, consisting of estimated expenses related to employee termination benefits, decommissioning of plant and machinery, and other closure-related incidental expenses, was taken in Q3FY25, in relation to cessation of soda ash production at the Lostock plant in Northwich, UK.
The company’s revenue from operations fell 3.8% to ₹3,590 crore as against ₹3,730 crore in the corresponding period of the preceding fiscal. At the operating level, EBITDA was down 19.9% to ₹434 crore in the third quarter of this fiscal over ₹542 crore YoY.
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The EBITDA margin stood at 12.1% in the reporting quarter compared to 14.5% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.
Tata Chemicals’ gross debt stood at ₹6,722 crore as of December 31, 2024, an increase of ₹810 crore YoY, while net debt rose by ₹952 crore to ₹5,329 crore due to lower EBITDA and higher working capital requirements across the US, Kenya, and India.
The company commissioned a 70 KTPA pharma salt plant in the UK during the quarter. Sales and production volumes of soda ash, bicarbonate, and salt were higher compared to Q3 FY24.
R Mukundan, Managing Director and CEO, Tata Chemicals, said, “Overall Asia, including India, continues to experience growth, while other markets, including the US and Western Europe, are witnessing slight decline due to reduced demand for flat and container glass.”
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“The company’s overall performance was down as compared to the same quarter of the previous year, mainly due to lower soda ash pricing across geographies and higher fixed costs in the US due to a plant production outage during the quarter. Our endeavour is to maximise sales through customer engagement while ensuring steady contribution margins with a focus on cost optimisation. In the short term, the current demand-supply adverse situation is likely to persist but should improve and stabilise over the long term driven by growth sectors based on sustainability trends.” Mukundan added.
The results came after the close of the market hours. Shares of Tata Chemicals Ltd ended at ₹947.75, down by ₹16.70, or 1.73%, on the BSE.
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