Tata Chemical Q2FY23 Preview: Tata Group company’s profit may double YoY, margins likely to expand on improved exports

Tata Chemical Q2FY23 Preview: Tata Group chemical company Tata Chemical is likely to post strong July-September quarter earnings for the financial year 2022-23 (Q2FY23) on Thursday, October 27, 2022, according to the Zee Business news channel preview report. Almost on all fronts, year-on-year (YoY) robust growth is likely, it said.

The consolidated revenue of Tata Chemical may rise by 37 per cent to Rs 4,131 crore (estimate) in the second quarter of FY23 as compared to Rs 3,023 crore in a year ago quarter. While its consolidated profit is expected to double YoY in Q2FY23 to Rs 545 crore (estimate) versus Rs 268 crore in Q2FY22.

Similarly, the consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) is also expected to nearly double during the quarter to Rs 955 crore (estimate) against Rs 501 crore in the corresponding quarter of the previous fiscal year, the preview report by Zee Business said.

At the margins front, it may expand by around 600 basis points to 23 per cent (estimate) in Q2FY23 against 17 per cent in the same quarter a year ago period, the preview report also noted.

In line with Zee Business expectations, Street also expects robust quarterly results for Tata Chemical. ICICI Direct Research sees profit doubling YoY and operating profit margins expanding over 600 basis points during the quarter.

It expects flat glass demand to also have improved and thereby the demand for soda ash, since there has been a revival in construction activity across the globe and believes that the export business for the North America unit to have performed well, giving respite to the overall performance.

Shares of Tata Chemical have been one of the most recommended by leading brokerages as well as market analysts for bumper returns during Muhurat Trading. The stock has surged almost 30 per cent year-to-date in an otherwise flat market, it closed almost 2 per cent higher to Rs 1180 on Tuesday.

The stock has registered mulitbagger returns by surging over three-fold in the last two years – from Rs 322 on October 30, 2020, to Tuesday’s closing price on exchanges.