Latest news with #TataChemicals'
Mint
3 days ago
- Business
- Mint
Tata Chemicals' domestic business saves the day in Q1 amid global market pressure
Tata Chemicals Ltd's consolidated Ebitda rose 13% year-on-year in the June quarter (Q1FY26) to ₹649 crore aided by lower input costs. The growth comes on a low base, given Ebitda had declined 45% in Q1FY25 and 31% in FY25. However, the Ebitda is still 38% below the Q1FY24 figure. Put together, Q1FY26 Ebitda margin expanded 240 basis points (bps) year-on-year to 17.5%. While the domestic business Ebitda growth was 24%, two of the three overseas regions of US, UK and Kenya, reported an Ebitda decline. The three regions contributed 46% of consolidated Q1 revenue of ₹3,700 crore, which is almost 2% down year-on-year due to muted volumes. The market for soda ash, Tata Chemicals' key product, remains under pressure with excess global capacity, although the Indian market continues to be steady. Domestic soda ash and sodium bicarbonate, an intermediate product for soda ash production, volumes grew 19% and 38%, respectively, thanks to fresh capacities commissioned in H2FY25. Also Read: This chemicals maker is betting on a gasoline boost to ease its margin pain Overseas businesses volume fell due to delayed shipments and the closure of the loss-making soda ash unit in the UK in Q4FY25. While the UK's revenue declined 28% year-on-year, Ebitda margin jumped over 500 bps to 8.5%. The closure of the UK plant would help Tata Chemicals achieve an incremental Ebitda of ₹600 crore in FY26, as per the management, which translates into over 30% year-on-year growth. Higher volumes from domestic capacity expansion and cost-saving initiatives would be other drivers for Ebitda. The UK business is expected to get another boost to its profitability and revenue with the commissioning of a 70 kilo tonne per annum (ktpa) plant for production of pharma grade salt in Q1 and in-house production of carbon dioxide gas. The plant is going through the process of qualification with customers and should get an approval in H2FY26. However, it has put a pause on its US expansion plans until the market recovers. Also Read: SRF pushes the pedal on capex amid potential demand revival While the stock is about 13% down in the past one year, it has gained 26% from its 52-week low of ₹756 on 3 March after the closure of its UK plant. The stock trades at an EV/Ebitda of 13.5x for FY26 estimates, shows Bloomberg data. Robust growth in consuming industries of solar cells and electric vehicles aids Tata Chemicals outlook, but sustained earnings growth is crucial for the stock. Investors will also keep a tab on plant closure announcements across the globe that can help the industry consolidate.
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Business Standard
6 days ago
- Business
- Business Standard
Tata Chemicals Q1 FY26 result: Profit jumps 68% at ₹252 cr, revenue down 2%
Tata Chemicals on Friday reported a 68 per cent year-on-year (Y-o-Y) increase in its consolidated net profit to ₹252 crore for the first quarter of financial year 2025-26 (Q1 FY26), up from ₹150 crore in the same period last year. The company had posted a loss of ₹56 crore in the previous quarter (Q4 FY25). The company's revenue from operations declined 2 per cent Y-o-Y to ₹3,719 crore from ₹3,789 crore in Q1 FY25. However, the revenue increased 6 per cent sequentially from ₹3,509 crore in Q4 FY25. The firm attributed the decline to the closure of operations at its Lostock plant in the United Kingdom. Total expenses for the quarter stood at ₹3,497 crore, down 3.4 per cent from ₹3,621 crore in Q1 FY25. On a sequential basis, the expenses were 3.2 per cent lower than ₹3,612 crore in Q4 FY25. The company's earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased to ₹649 crore from ₹574 crore a year ago, driven by lower input costs. Tata Chemicals' net debt as of June 30, 2025, stood at ₹4,972 crore, excluding lease liabilities of ₹760 crore, the company said in a BSE filing. 'Market conditions remain fluid with overall global demand estimated to be flat in near term, due to the uncertainty associated with trade tariffs,' said R Mukundan, managing director & chief executive officer of Tata Chemicals. 'Demand conditions are stable in India and China. In other regions, Asia (excluding China and India) and the Americas (excluding USA) demand is robust. As demand-supply remains balanced, tariff uncertainties will continue to weigh on market, however, medium and long-term outlook remains positive driven by sustainability trends,' he said.
Time of India
29-05-2025
- Automotive
- Time of India
Tata Chemicals rejig: Chandra steps down as chairman
Photo/Agencies MUMBAI: Tata Chemicals' board is undergoing a rejig, with N Chandrasekaran stepping down as chairman. The position will be assumed by company director S Padmanabhan. In his letter to the board, Chandrasekaran, who is also the chairman of Tata Chemicals' parent Tata Sons , cited his current and future commitments as the reason for his decision to step down. Chandrasekaran, who owns Tata Chemicals shares worth nearly Rs 9 crore, joined the company's board in Nov 2020. Rules allow an individual to be a director of up to 20 companies, encompassing public, private, listed, and unlisted entities. With Tata Motors splitting into two separate entities, Chandrasekaran will have additional directorship responsibilities at the automotive giant. Also, he was recently appointed as the chairman of the Ratan Tata Endowment Foundation, which is a beneficiary of the late industrialist Ratan Tata's shares in Tata companies, valued at Rs 2,750 crore. Within the 20 companies, an individual can serve on the boards of 10 public companies, and within those 10, he can be a director of up to seven listed companies. Tata Chemicals has also appointed Modan Saha, strategy head at Tata Sons, as an additional director of the company. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
28-05-2025
- Business
- Time of India
N Chandrasekaran steps down and S Padmanabhan assumes chairman role at Tata Chemicals
N Chandrasekaran steps down and S Padmanabhan assumes chairman role at Tata Chemicals MUMBAI: The board of Tata Chemicals is undergoing a restructuring, with N Chandrasekaran stepping down as chairman. This position will be assumed by existing company director, S Padmanabhan. In his letter to the board, Chandrasekaran, who is also the chairman of Tata Chemicals' parent, Tata Sons, cited his current and future commitments as the reason for his decision to step down. Chandrasekaran, who owns Tata Chemicals shares worth nearly Rs 9 crore, joined the company's board in November 2020. Rules allow an individual to be a director of up to 20 companies, encompassing public, private, listed, and unlisted entities. With Tata Motors splitting into two separate entities, Chandrasekaran will have additional directorship responsibilities at the automotive giant. Additionally, he was recently appointed as the chairman of the Ratan Tata Endowment Foundation, which is a beneficiary of the late industrialist Ratan Tata's shares in Tata companies, valued at Rs 2,750 crore. Within the 20 companies, an individual can serve on the boards of 10 public companies, and within those 10, he can be a director of up to seven listed companies. Tata Chemicals has also appointed Modan Saha, strategy head at Tata Sons, as an additional director of the company. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
08-05-2025
- Business
- Economic Times
Tata Chemicals shares rise 2% after Q4 net loss narrows to Rs 56 crore
Tata Chemicals shares climbed as much as 2.2% on Thursday to Rs 844.3 on the BSE after the company reported a consolidated net loss of Rs 56 crore for the quarter ended March 31, significantly lower than the Rs 850 crore loss in the same period last year. ADVERTISEMENT Revenue for the March quarter rose marginally by 1% year-on-year (YoY) to Rs 3,509 crore, compared to Rs 3,475 crore in Q4FY24, amid continued pricing pressure across geographies. EBITDA declined 26% YoY to Rs 327 crore from Rs 443 crore in the year-ago quarter. The EBITDA margin also contracted to 9.3% from 13.8%, driven by rising costs. The company's board has recommended a dividend of Rs 11 per share (110%) for FY25, subject to shareholder approval at the 86th Annual General Meeting (AGM). If approved, the dividend will be paid within five days of the AGM, after deducting applicable taxes. Also Read:5 timeless Warren Buffett quotes every investor should know Tata Chemicals' board has also approved a proposal to raise up to Rs 200 crore through term loans and/or the issuance of non-convertible debentures (NCDs) via private placement. An internal committee has been authorised to finalise the terms and execute the plan. ADVERTISEMENT R. Mukundan, Managing Director & CEO of Tata Chemicals, said, 'Market conditions remain challenging even as India continues to grow, while China, the US, and Western Europe are witnessing slight declines due to reduced demand for flat and container glass. In other regions, Asia (excluding China and India) and the Americas (excluding the USA) have robust demand, while a slight decline is observed in Africa.''Though the demand-supply balance is softening, tariff uncertainties will continue to weigh on the market. However, the medium- and long-term outlook remains positive, driven by sustainability trends,' he added. ADVERTISEMENT Also Read: Stocks in news: L&T, Titan, Asian Paints, Coal India, Dabur, Kfin Tech ADVERTISEMENT According to Trendlyne data, the average target price for the stock is Rs 826. The consensus recommendation from seven analysts is a 'Sell'.On Wednesday, Tata Chemicals shares closed 1.25% higher at Rs 826.3 on the BSE, while the Sensex rose 0.13%. The stock is down 20% year-to-date and 26% over the past six months. The company's market capitalisation stands at Rs 21,050 crore. (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
