Tata Chemicals Ltd has reported a net loss of Rs 841 crore in the January-March quarter of FY24, marking a significant downturn compared to the profit of Rs 692 crore recorded in the same period a year ago. The company declared a dividend of Rs 15 per share despite the challenging financial results.
During the fiscal year ended March 31, 2024, Tata Chemicals recognized a non-cash write-down of assets totaling Rs 963 crore. This exceptional loss was attributed to the soda ash and bicarb operations in the United Kingdom. The impairment was primarily due to unfavorable market conditions and reduced demand for soda ash in Europe, coupled with persistently low pricing outlook, leading to downward revisions in cash flow projections.
The company’s revenue dropped by 21.1 percent to Rs 3,475 crore in the fourth quarter, compared to Rs 4,407 crore in the year-ago period. The earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a decline, coming in at Rs 443 crore, down from Rs 965 crore in the previous year. The EBITDA margin stood at 12.8 percent, a decrease from 21.9 percent in the corresponding period.
Earlier this year in March, Fitch Ratings revised the outlook on Tata Chemicals’ long-term foreign-currency issuer default rating (IDR) to “stable” from “positive” while affirming the rating at ‘BB+’. Despite the financial challenges, Tata Chemicals remains optimistic about its future prospects.
Established in 1939, Tata Chemicals Ltd is a part of the prestigious Tata Group. Its business segments include basic chemistry products, salt-making facilities, and specialty products. Tata Chemicals is currently the third-largest producer of soda ash globally, with a total annual capacity of 4.1 million tonnes. Additionally, it is the sixth-largest manufacturer of sodium bicarbonate worldwide.
Despite the setbacks, Tata Chemicals remains committed to driving innovation and maintaining its position as a leader in the chemical industry.
