4 days ago
India's Tata Chemicals posts first-quarter profit jump on cost reductions
July 25 (Reuters) - India's Tata Chemicals ( opens new tab reported a rise in first-quarter profit on Friday, as lower expenses limited the impact of lower soda ash prices and subdued volumes.
The chemical maker's consolidated net profit rose 87% to 2.52 billion rupees ($29.1 million) in the quarter ended June 30.
Its revenue from operations dropped 1.9% to 37.19 billion rupees. However, expenses declined at a faster rate of 3.4% to 36.21 billion rupees, on inventory gain and a drop in power and fuel expenses.
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Global soda ash prices, which account for two-thirds of Tata Chemicals' sales volume, remained under pressure due to an oversupply from China. Prices of the chemical slumped about 34% during the April-June quarter, according to analysts at PL Capital.
Demand for flat and container glass, which uses soda ash in production, is steadily increasing in India, with Mordor Intelligence projecting a compounded annual growth rate of 5.42% through 2030.
However, heavy dumping of the chemical by Chinese exporters has sharply decreased prices. Analysts said anti-dumping investigations may result in safeguard duties, supporting domestic producers.
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APRIL-JUNE STOCK PERFORMANCE
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