The Hindu Business Line : Tata Chem net profit rises 44 pc on increased sales

, TATA Chemicals Ltd (TCL) on Tuesday reported a 44.35 per cent rise in profit after tax for the quarter ended September 30, 2005, at Rs 125.86 crore against Rs 87.19 crore in the year-ago period. Net sales/income from operations moved up 36.69 per cent to Rs 996.53 crore (Rs 729.02 crore).

For the first half of 2005-2006, the company posted a 43.64 per cent increase in profit after tax at Rs 190.80 crore (Rs 132.83 crore) on a 20.57 per cent gain in net sales/income from operations at Rs 1,506.51 crore (Rs 1,249.44 crore).

"Our strong business performance is a result of enhanced sales volumes, improved price realisations and a concerted thrust on control of prices of various inputs as well as sales and distribution costs."

"The external environment is becoming increasingly conducive with encouraging demand growth, especially in the chemicals business. Concerns, however, remain with regard to the settlement of phosphoric acid prices," Mr Prasad Menon, Managing Director, TCL, has said.

According to an official statement, the company had a domestic market share of 33.7 per cent in soda ash during the first half. On an overall basis (including imports), its market share was 31.9 per cent.

Domestic demand for soda ash grew at 4.3 per cent year-on-year with TCL's H1 sales volume rising 12.3 per cent. Soda ash sales volume for the quarter was 150,000 tonnes, taking volumes for the year to 275,000 tonnes. H1 export of soda ash touched 56,000 tonnes and for the quarter, it was 30,000 tonnes. On October 1, 2005, prices of soda ash were increased by an average of Rs 400 per tonne.

In food additives, TCL has launched a new brand of iodised salt called `Topp' in Oman and Singapore. Tata Salt's domestic market share was 35.5 per cent over July-August 2005.

Urea sales in H1 touched 508,000 tonnes; it was 307,000 tonnes for the quarter. H1 sale of DAP, NPK and complex fertilisers stood at 323,000 tonnes (272,000 tonnes for Q2), of which 53 per cent was composed of higher-margin NPKs and complex crop-specific fertilisers. "Delays in the settlement of phosphoric acid prices and expected tight supply of rock phosphate and phosphoric acid in foreseeable future, however, continue to be a challenge," the statement said.

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