Tata Chemicals Limited
NSE Symbol TATACHEM
TATA CEHMICALS
has performed well in the third quarter ending Dec, 2011.
Net Sales
in Q3 FY 12 stands at Rs.3793.93 cr – up by 7.18% from Q2 FY 12; up by 29.77%
from Q1 FY 12; and up proportionately (Q3FY 12
x 4 vs FY 11 total) by 39.3% from
FY total. Sales have been growing in a healthy trend consistently. The Q3 FY 11
Net sales was Rs.2859.80 cr
Raw Materials
in Q3 FY 12 stands at Rs.1744.29 cr – up by 14.26% from Q2 FY 12; up by 29.08% from Q1 FY 12; and up
proportionately (Q3FY 12 x 4 vs FY 11 total) by 50.1% from FY total.
Traded goods
in Q3 FY 12 stands at Rs. 524.31 cr – down
by -25.38% from Q2 FY 12; up by 9.54%
from Q1 FY 12; and up proportionately (Q3FY 12
x 4 vs FY 11 total) by 44.75%
from FY total.
Other Expenditure
in Q3 FY 12 stands at Rs.754.21 cr – up by 12.14%
from Q2 FY 12; up by 9.57% from Q1 FY
12; and up proportionately (Q3FY 12 x
4 vs FY 11 total) by 29.67% from FY
total.
Total Expenditure
in Q3 FY 12 stands at Rs.3376.90 cr – up by 11.75%
from Q2 FY 12; up by 32.32% from Q1 FY 12; and up proportionately (Q3FY 12 x 4 vs
FY 11 total) by 40.01% from FY total. Overall, total expenditure has grown more
than proportionately compared to Net Sales.
Profit from Operations
in Q3 FY 12 stands at Rs.432.97 cr – down by -21.13% from Q2 FY 12; up by 7.74%
from Q1 FY 12; and up proportionately (Q3FY 12
x 4 vs FY 11 total) by 22.61% from FY total. The Q3 FY 11 OPT was
Rs.329.88 cr – and there is a healthy increase over this in Q4 FY 12 OPT.
Profit before tax
in Q3 FY 12 stands at Rs.320.41 cr; down by -33.38%
from Q2 FY 12; up marginally by 0.27%
from Q1 FY 12; and up proportionately (Q3FY 12
x 4 vs FY 11 total) by 14.33%
from FY total. The Q3 FY 11 PBT was Rs.285.45 cr. There is good increase over Q3
FY 11 in Q3 FY 12.
Net Profit
in Q3 FY 12 stands at Rs.255.92 cr – down
by -25.88% from Q2 FY 12; down marginally
by -0.06% from Q1 FY 12; and up
proportionately (Q3FY 12 x 4 vs FY 11 total) by 21% from FY total. The Q3 FY 11 NPT was Rs.208.70 cr.
Consolidated NPT
in Q3 FY 12 stands at Rs.223.78 cr – down by -18.75% from Q2 FY 12; up by 11.96% from Q1 FY 12; and up
proportionately (Q3FY 12 x 4 vs FY 11 total) by 36.98% from FY total. The Q3 FY 11 CNPT was Rs.164.57 cr. There is
a reasonable increase in C-NPT in Q3 FY 12 over Q3 FY 11
Face Value
is Rs.10 and Paid
up equity is Rs.254.82 cr.
Basic EPS(Rs)
stands at Rs.8.78 in Q3 FY 12; Rs.10.81 in Q2 FY 11; Rs.7.85 in Q1 FY 12; and
Rs.26.1 in FY 11. The Q3 FY 11 C-EPS was 6.46.
As we can see – though, sequentially
over previous qtr, the results show no improvement, on YOY basis, there is reasonable
increase. There is also good increase proportionately compared to FY 11 total.
Current year total EPS
may be around Rs.36.22
Current
Market price is Rs.363.95; While the 52 week high price is
Rs.394 and the 52 week low price is
Rs.287.
The PE ratio works out to 10.05.
9M FY2012 consolidated financial highlights
Net sales higher by 23 per cent to
Rs10,335 crore.
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Profit from operations rises to
Rs1,757 crore; EBIDTA margins at 17 per cent.
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TCL has not recognised subsidy
income of Rs45 crore on opening stock of raw materials for phosphatic and
potassic fertilisers, in accordance with the office memorandum issued by the
Department of Fertilisers (DoF) dated July 11, 2011. The matter is being
contested.
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PBT at Rs1,121 crore vis-à-vis
Rs859 crore.
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PAT (after minority interest) at
Rs699 crore against Rs508 crore. It includes following non-operational items:
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Profit of Rs51 crore from sale of
investments.
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Unrealised loss of Rs60 crore on
revaluation of un-hedged ECB in accordance with notification issued MCA.
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Impairment of assets Rs23 crore
(biofuels and Rallis (Turbhe facility)).
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VRS at Rallis (Turbhe facility)
and Mithapur of Rs20 crore.
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Provision for impairment of
investment in Khet-Se Rs12 crore; post suspension of operations.
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Impact of Rs33 crore in accordance
with the above circular issued by DoF.
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EPS (diluted and non-annualised)
at Rs27.44.
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Q3 FY12 business highlights and developments
Growth across all locations —
domestic and international.
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Demand environment across major
products stable.
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Rising input costs exerting
pressure on margins, partially mitigated by higher realisations and efficient
operations.
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However, early signs of
contraction of soda ash demand beginning to appear.
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Expansion of soda ash capacity by
100,000TPA at TCNA concluded.
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Improved operational efficiencies
at customised fertiliser plant.
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Rupee depreciation and higher farm
gate prices restraining off-take.
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Debottlenecking of SSP capacity by
50,000TPA at Haldia complete. Post commencement stabilisation underway.
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Commenting on the company’s Q3
FY2011-12 performance, R Mukundan, managing director, said:
“We are delighted to report
continuing strong operating and financial performance. All our facilities both,
domestic and international have performed well. Our production and sales
volumes have been stable. While input prices have been rising, our operational
efficiencies have enabled us to increase prices to a lesser degree, thus
keeping our end consumer relatively protected.
During the quarter under review, we
completed the 100,000 tonne expansion of our natural soda ash facility in North
America as well as the debottlenecking of our SSP capacity at Haldia by
50,000MT. Both these operations are expected to achieve stability in the
current quarter. We have also significantly expanded our distribution presence
for i-Shakti pulses and are now present in 18 states across the country.
Firm input prices continue to
present a challenge but the strengthening of the Indian rupee over the last
month has been encouraging. While the current demand environment appears
stable, it continues to be influenced by several macro environment factors. I
am however confident that our access to low-cost resources combined with
efficient operations and well-entrenched and expansive distribution network
will enable us to continue to create value and drive growth.”
BUSINESS PERFORMANCE
Chemicals
Prices
hiked across locations — helped mitigate impact of rising input cost.
Domestic
demand for soda ash stable.
Operational
performance maintained at Mithapur facility.
Higher
variable cost of production given rising input costs (imported coal and
limestone) continue — usage efficiency and price hike partially offset the
impact.
Tata
Chemicals Europe operations witnessing improving utilisation.
Delayed
onset of winter with mild conditions in January may impact salt sales.
British
Salt performance robust — production, sales and realisations continue to be
healthy.
Steady
improvement in Magadi operations. Volumes lower largely due to power outage and
lack of rakes.
Magadi
Return to Excellence (MRTE) programme initiatives likely to bring down
consumption in next few quarters.
Production
at Tata Chemicals North America moderated due to slow resumption of operations
post expansion.
However,
improved realisations partially mitigated the impact.
Consumer
products
Strong
demand continues for branded salt pan India — volumes growth at approximately 9
per cent.
National
branded segment as a percent of total salt segment grows strongly — stands at
24 per cent in 2010-11.
Maintained
leadership position with a 64 per cent market share in the national branded
segment.
i-Shakti
pulses available across 18 states.
Strong
sales promotion activities enable robust off-take for i-Shakti range of pulses.
Fertilisers
Operations
at Babrala stable; new ammonia convertor to be hooked up in March / April 2012.
Improvement
in profitability of customised fertiliser on account of steady rise in volumes
and firm pricing.
Speciality
fertiliser register healthy volume growth — plans to aggressively grow this
business.
Firm
prices of phosphoric acid combined with higher sales volumes at IMACID improve
performance.
CONSOLIDATED RESULTS TABLE
Q3FY12
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%DIF1
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%DIF2
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%DIF3
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Net Sales
|
379393
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353,984.00
|
7.18
|
292,367.00
|
29.77
|
1,089,462.00
|
39.3
|
Other Oprtng Income
|
1594
|
3,112.00
|
-48.78
|
3,028.00
|
-47.36
|
16,553.00
|
-61.48
|
Increase in SIT/WIP
|
-2215
|
-22,766.00
|
-90.27
|
-32,336.00
|
-93.15
|
-4,664.00
|
89.97
|
Raw Materials
|
174429
|
152,656.00
|
14.26
|
135,131.00
|
29.08
|
464,820.00
|
50.1
|
Traded goods
|
52431
|
70,263.00
|
-25.38
|
47,863.00
|
9.54
|
144,884.00
|
44.75
|
Employees Cost
|
25345
|
22,282.00
|
13.75
|
23,227.00
|
9.12
|
81,971.00
|
23.68
|
Depreciation
|
12279
|
12,504.00
|
-1.80
|
12,490.00
|
-1.69
|
45,105.00
|
8.89
|
Other Expenditure
|
75421
|
67,257.00
|
12.14
|
68,833.00
|
9.57
|
232,653.00
|
29.67
|
Total
Expenditure
|
337690
|
302,196.00
|
11.75
|
255,208.00
|
32.32
|
964,769.00
|
40.01
|
Profit
from Operations
|
43297
|
54,900.00
|
-21.13
|
40,187.00
|
7.74
|
141,246.00
|
22.61
|
Other Income
|
4537
|
8,177.00
|
-44.52
|
1,787.00
|
153.89
|
9,619.00
|
88.67
|
Interest
|
11111
|
10,156.00
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9.40
|
9,354.00
|
18.78
|
35,083.00
|
26.68
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Exceptional items
|
4682
|
4,826.00
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-2.98
|
666
|
603.00
|
3,686.00
|
408.08
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Profit
before tax
|
32041
|
48,095.00
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-33.38
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31,954.00
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0.27
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112,096.00
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14.33
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Tax Expense
|
6449
|
13,569.00
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-52.47
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6,346.00
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1.62
|
27,492.00
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-6.17
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Net
Profit
|
25592
|
34,526.00
|
-25.88
|
25,608.00
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-0.06
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84,604.00
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21
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Minority Interest
|
2996
|
6,983.00
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-57.10
|
5,621.00
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-46.70
|
19,257.00
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-37.77
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Consolidated
NPT
|
22378
|
27,543.00
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-18.75
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19,987.00
|
11.96
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65,347.00
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36.98
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Face Value (in Rs.)
|
10
|
10
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0.00
|
10
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0.00
|
10
|
300
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Paid-up Equity
|
25482
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25,482.00
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0.00
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25,482.00
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0.00
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25,482.00
|
300
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Reserves
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-
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-
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-
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519,687.00
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Basic EPS(Rs)
|
8.78
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10.81
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-18.78
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7.85
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11.85
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26.1
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34.56
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Public holding (%)
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68.93
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68.93
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0.00
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68.92
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0.01
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68.77
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300.93
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