Tata Chemicals Ltd posted a net loss of ₹21 crore for the third quarter ending December 31, 2024, compared to a net profit of ₹194 crore in the same period last year. The loss was primarily driven by a ₹70 crore exceptional charge related to employee termination benefits, decommissioning of plant and machinery, and other closure-related costs linked to the cessation of soda ash production at the Lostock plant in Northwich, UK.
Revenue for the quarter declined by 3.8%, reaching ₹3,590 crore, down from ₹3,730 crore in Q3 FY24. Operating profit, measured by EBITDA, also fell by 19.9%, dropping to ₹434 crore from ₹542 crore in the previous year. The EBITDA margin decreased to 12.1% from 14.5% in the same period last year.
The company’s gross debt stood at ₹6,722 crore as of December 31, 2024, marking an increase of ₹810 crore from the previous year. Net debt rose by ₹952 crore to ₹5,329 crore, due to lower EBITDA and higher working capital needs in the US, Kenya, and India. Despite the challenges, Tata Chemicals launched a new 70 KTPA pharma salt plant in the UK during the quarter, and soda ash, bicarbonate, and salt production and sales volumes were higher than in Q3 FY24.
R Mukundan, Managing Director and CEO of Tata Chemicals, explained, “Asia, including India, continues to see growth, while markets in the US and Western Europe are experiencing slight declines due to reduced demand for flat and container glass.” He added, “The performance decline compared to last year was mainly due to lower soda ash prices and higher fixed costs in the US due to a plant outage. While the short-term outlook remains challenging, we are focused on cost optimization and customer engagement to drive stable margins, with longer-term recovery expected from growth sectors aligned with sustainability trends.”
Tata Chemicals, part of the US$ 165 billion Tata Group, is a key supplier to the Glass, Detergent, Industrial, and Chemical sectors. The company also has a significant presence in the crop protection market through its subsidiary, Rallis India Limited, and operates world-class R&D facilities in Pune and Bangalore.
