The shares of the world’s third-largest producer of soda ash fell up to 5 percent after the company reported its first quarterly loss in nine years because of a decrease in demand for soda ash.
With a market capitalization of Rs 27,360.82 crore, the shares of Tata Chemical Ltd were trading at Rs 1,074.40 apiece, decreasing around 2.24 percent as compared to the previous closing of Rs 1,099 apiece.
Looking into the company’s performance, Tata Chemical Ltd’s revenue decreased by 7 percent on a quarter-on-quarter basis from Rs. 3,730 crore in Q3FY24 to Rs. 3,475 crore in Q4FY24. Further, revenue decreased by 21 percent year on year, from Rs. 4,407 crore in Q4FY23 to Rs. 3,475 crore in Q4FY24.
Tata Chemical Ltd’s net profit decreased on a quarter-on-quarter basis, from a profit of Rs.194 crore in Q3FY24 to a loss of Rs. 841 crore in Q4FY24. Further, net profit decreased by 221 percent year on year from a profit of Rs. 692 crore in Q4FY23 to a loss of Rs. 841 crore in Q4FY24.
In this quarter the company’s earning was impacted by the US exports and the European soda ash price correction. The key challenges continue in the European market and Turkish capacities are being sold to the rest of the month.
According to Emkay Research analysts, soda ash prices fell 21% in the March quarter compared to the same period last year. In addition to the soap and detergent industries, the chemical is used to lower the melting point of silica in the production of glass.
Tata Chemicals is the world’s third-largest producer of soda ash, with a capacity of 4.36 million MT. While long-term growth (CAGR) is predicted to be 3% globally and 6% in India, new applications like solar glass and lithium carbonate, in addition to established usage, are accelerating expansion.
Tata Chemicals Limited is an India-based corporation that provides sustainable chemical solutions. The company’s segments are Basic Chemistry Products and Specialty Products. The Basic Chemistry Products section includes inorganic compounds such as soda ash, salt, and sodium bicarbonate.
Written by:- Abhishek Singh
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