Tata Chemicals net profit falls 9.67% to Rs 532 crore in Q1

Tata Chemicals Q1 results: Tata Chemicals, part of the Tata Group, on Monday reported a 9.67 per cent decline in consolidated net profit at Rs 532 crore during the April-June quarter of the current financial year. The company's net profit stood at Rs 589 crore during the corresponding period of the previous fiscal, Tata Chemicals said in a regulatory filing. Revenue from operations of the company grew by 5.58 per cent during the quarter under review at Rs 4,218 crore compared to 3,995 crore in the same period of the previous year.

"The company has delivered a satisfactory performance during the first quarter of FY24, compared to Q1 FY23 despite a challenging environment. The soda ash prices were adversely impacted as many customers delayed their purchasing decisions due to new supplies expected from inner Mongolia, China," Tata Chemicals Managing Director and CEO R Mukundan said.

This was further impacted by slower growth in the Chinese economy post-Covid and softening of industrial production in developed economies and this may persist in the near term, he said. "The company had to adopt agile pricing to maximize volumes and ensure optimum utilisation of capacity. We expect that the sustainability trend will continue to positively impact the demand for newer applications like solar glass and lithium in the medium to long term. Our focus is to ensure that we maintain our market share through customer engagement and continued agile pricing, and to ensure steady contribution margins with focus on costs," he added.