Tata Chemicals shares slip 5% after firm posts Rs 818 crore net loss in Q4

Tata Chemicals share price, Tata Chemicals Q4 results: Shares of Tata Chemicals slipped nearly five per cent on Tuesday, April 30 after the Tata Group's commodity chemicals company reported a net loss of Rs 818 crore in the fourth quarter ended March 31, 2024, on lower income and provision of loss on account of exceptional items of Rs 963 crore in the UK business. Tata Chemicals had posted a net profit of Rs 694 crore in the year-ago period.

The stock slipped as much as 4.5 per cent to the day's low of Rs 1,050 on NSE in opening deals, extending the declining trend for the fourth session. The Tata Chemicals stock closed 2.49 per cent lower at Rs 1,072.1 on NSE.

On Monday, post market hours the company released its Q4 earnings report. The consolidated profit after tax (before exceptional items and Non-Controlling Interest) from continuing operations declined to Rs 145 crore in the fourth quarter of the last fiscal, as compared to Rs 694 crore in the corresponding period of the preceding year, according to the company's regulatory filing.

The company's total income fell to Rs 3,589 crore in the fourth quarter of the last fiscal year from Rs 4,482 crore in the year-ago period.

During the 2023-24 fiscal, the company reported an 82 per cent decline in profit after tax from continuing operation to Rs 449 crore mainly due to provision of loss on account of exceptional items of Rs 861 crore and lower income. Its net profit stood at Rs 2,452 crore in the preceding year.

Profit after tax (before exceptional items and Non-Controlling Interest), declined to Rs 1,310 crore last fiscal, as compared to Rs 2,452 crore in financial year 2022-23, the company said in a regulatory filing.

"Overall demand for soda ash in India stayed stable during the (fourth) quarter on account of rising demand from the detergent and chemical sectors. During the year, salt production & sales were at the highest level," R Mukundan, Managing Director & CEO Tata Chemicals Limited, said.

The European soda ash market remained under pressure due to muted demand and margin pressure leading to one-time non-cash charge of Rs 963 crore in UK, he said. Read more on Tata Chemicals Q4 results 

Tata Chemicals Q4 result review: Results weak on all fronts, says Anil Singhvi

Zee Business Managing Editor Anil Singhvi suggested selling Tata Chemicals futures for targets of Rs 1,070 and Rs 1,055 with a stop loss at Rs 1,120, citing the Tata group company's weak quarterly numbers. 

Tata Chemicals' quarterly margin has contracted to 12.7% from 22% and the management's outlook looks cautious, the market wizard pointed out. 

Tata Chemicals dividend

Tata Chemicals has announced a Rs 15 per share dividend. "The dividend, if approved by the members at the ensuing 85th Annual General Meeting (AGM) of the Company, will be paid (subject to deduction of tax at source) within five days of the AGM," it said. 

What does Tata Chemicals do?

A part of the USD 150 billion Tata Group, Tata Chemicals Ltd, is a leading supplier of choice to glass, detergent, industrial and chemical sectors. The company has a strong position in the crop protection business through its subsidiary company, Rallis India.

(with PTI inputs)

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