Tata Chemicals to pay ₹15 dividend; Tata Group firm posts net loss in Q4 on UK write-down

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Chemicals reported on Monday, April 29, a consolidated net loss of ₹850 crore in the quarter ended March 31, compared to a profit of ₹709 crore the Tata Group firm had posted a year ago. The loss is its first quarterly loss in nine years owing to a one-time write-down incurred in its UK operations along with lower prices and demand for soda ash.

Tata Chemicals said it incurred a non-cash write-down of assets aggregating to ₹963 crore as an exceptional loss in respect of its UK operations.

Tata Chemcials’ Q4 revenue from operations dropped 21% to ₹3,475 crore, which is the company’s third consecutive quarter of decline.

#4QWithCNBCTV18 | Tata Chemical reports #Q4 earnings👇

➡️Loss at ₹850 cr vs profit of ₹709 cr (YoY)
➡️Revenue down 21.1% at ₹3,475 cr vs ₹4,407 cr (YoY)
➡️EBITDA down 54.1% at ₹443 cr vs ₹965 cr (YoY)
➡️Margin at 12.8% vs 21.9% (YoY)
➡️Company reported an impairment loss… pic.twitter.com/V8o9GwBtd9

— CNBC-TV18 (@CNBCTV18Live) April 29, 2024

Soda ash—which amounts to two-thirds of Tata Chemicals’ total sales volume—is facing lower demand as falling caustic soda prices make it more appealing for the silicate market, prompting the company to cut prices of its soda ash products at least five times since April 2023, according to a Reuters report.

The company’s board today recommended a final dividend of 150% for 2023-24 (April-March) at ₹15 per share. It has also approved raising ₹2,000 crore via non-convertible debentures.

For the year ended March 31, Tata Chemicals’ consolidated revenue was at ₹15,421 crore. The earnings before interest, tax, depreciation, and amortisation came in at ₹2,847 crore, while profit after tax was at ₹1,310 crore on CY basis.

Shares of Tata Chemicals closed at ₹1,099.5 rupees, down 2%, on the NSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow