Tata Chemicals Q4 Results: Reports Net Loss, Misses Estimates

• Revenue down 21.15% at Rs 3,475 crore vs Rs 4,407 crore (Bloomberg estimate: Rs 3,873 crore).

• Ebitda down 54.09% at Rs 443 crore vs Rs 965 crore (Bloomberg estimate: Rs 519 crore).

• Margin contracts 914 bps to 12.74% vs 21.89% (Bloomberg estimate: 13.4%).

• Net loss at Rs 841 crore vs profit of Rs 692 crore (Bloomberg estimate: Rs 182 crore).

Key Highlights

• Demand in Q4 FY24 shows sign of recovery, boosted by detergent and chemical sectors, it said.

• Revenue and Ebitda were impacted due to lower volume of soda ash and pricing pressure across all regions.

• The European soda ash market remained under pressure due to muted demand.

• Flat glass demand in US also continues to be weak.

• Group has recognised a non-cash writedown of assets aggregating to Rs 963 crore in UK, which has been disclosed as an exceptional loss.

• Consolidated profit after tax (before exceptional items and NCI) from continuing operations was Rs 145 crore, as compared with Rs 694 crore for the corresponding quarter of last year.

“Overall demand for soda ash in India stayed stable during the quarter on account of rising demand from the detergent and chemical sectors. During the year, salt production and sales were at the highest level. The European soda ash market remained under pressure due to muted demand and margin pressure leading to a one-time, non-cash charge of Rs 963 crore in UK," said R Mukundan, managing director and CEO, Tata Chemicals.

"We expect sustainability trend will drive the demand for newer applications like solar glass and lithium, which will fuel growth. Our focus is on timely execution of expansion projects and efficient cost management. We continue to work with our customers and other stakeholders on our sustainability and digitisation efforts,” he said.

The board has approved the proposal for raising of funds through issuance of non-convertible debentures on a private placement basis, for an amount up to Rs 2,000 crore.