Tata Chemicals reports financial performance for Q3 FY24 amid market challenges

Tata Chemicals Limited, a vital part of the expansive US$ 150 billion Tata Group, today announced its financial outcomes for the quarter and nine months ending December 31, 2023. The company faced significant challenges during this period, reflected in the consolidated and standalone financial metrics that indicate pressure on volumes and prices, especially in the soda ash sector which is pivotal to its operations.

The consolidated income from operations for the quarter dropped to ₹3,730 Cr from ₹4,148 Cr in the corresponding quarter of the previous fiscal year (Q3FY23). The EBITDA experienced a decrease to ₹542 Cr in comparison to ₹922 Cr in Q3FY23. Similarly, the Profit After Tax (PAT) fell to ₹194 Cr from ₹432 Cr in the same quarter the previous year. This decline is attributed to reduced volumes and pricing pressures across all regions, particularly affecting the container glass and flat glass sectors in Europe and the Americas.

On a standalone basis, the revenue stood at ₹1,093 Cr, a decrease from ₹1,218 Cr in Q3FY23. The standalone PAT also saw a reduction to ₹115 Cr from ₹190 Cr in the corresponding quarter of the last fiscal year. These figures reflect the broader challenges faced by the company in maintaining its market share and profitability amid adverse market conditions.

EBITDA and PAT Decline for Tata Chemicals in Challenging Q3 FY24

R. Mukundan, Managing Director & CEO of Tata Chemicals Limited, commented on the financial results, highlighting the difficult demand environment for soda ash both domestically and internationally. Despite these challenges, the company is focused on customer engagement, maintaining contribution margins through cost management and the production of higher value-added products. Mukundan also emphasized the company’s commitment to delivering capital investment projects on time, conserving cash, and continuing to deleverage.

Looking ahead, Tata Chemicals anticipates the current demand-supply challenges to persist in the short term but expects improvements and stabilization over the long term, driven by growth sectors aligned with sustainability trends. This strategic focus underscores the company’s resilience and adaptability in navigating market fluctuations while maintaining a commitment to sustainable growth and environmental stewardship.

Tata Chemicals Limited’s Q3 FY24 financial performance reflects the broader challenges faced by the global chemical industry, including demand fluctuations and pricing pressures. However, the company’s strategic focus on sustainability, efficient capital management, and leveraging growth sectors presents a solid foundation for overcoming current challenges and achieving long-term stability and growth.