Tata Chemicals Sees Major Profit Dip in Q2

Tata Chemicals reported a significant 54.67% decline in consolidated net profit, reaching Rs 194 crore for the second quarter ending September 2024. Contributing factors included flat revenue and weather-impacted operations. Despite lower profits, the company showed resilience through strategic focus on customer engagement and operational efficiency.

Tata Chemicals announced a steep 54.67% decrease in consolidated net profit for the second quarter, with figures dropping to Rs 194 crore. This represents a marked downturn from Rs 428 crore during the same period of the previous year, as disclosed in a regulatory filing.

The firm maintained flat revenue from operations at Rs 3,999 crore, nearly identical to the Rs 3,998 crore reported in the second quarter of FY24. While India's soda ash demand remained stable, markets in the Americas and Europe, particularly the container glass segment, faced subdued demand.

R Mukundan, Tata Chemicals' Managing Director and CEO, attributed part of the profit challenges to extreme weather conditions that affected the Mithapur operations. Yet, the company saw improved performance relative to the previous quarter, driven by increased sales volume and better soda ash realisation. Tata Chemicals continues its commitment to customer relationships and sustainable, digitised operations.

(With inputs from agencies.)