InvestorQ : What explains the smart growth in profits of Tata Chemicals in Q2FY23?
Arti Chavan made post

What explains the smart growth in profits of Tata Chemicals in Q2FY23?

Answer
image
Rutuja Nigam answered.
1 month ago
Follow

Tata Chemicals reported 40.3% higher sales revenues for September 2022 quarter at Rs4,239 crore on a consolidated basis. The basic chemistry products vertical saw sales grow 45.2% at Rs3,242 crore while the specialty products sales surged by 27% yoy at Rs999 crore. Tata Chemicals saw improved realizations across its international businesses spread across the US, UK and Kenya. In the US, the plant is located at Wyoming which is one of the largest Trona mining facilities. Trona is a key input that goes into the making of Soda Bicarb and other delicious products.

Tata Chemicals

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 4,239.00

₹ 3,022.00

40.27%

₹ 3,995.00

6.11%

Net Profit (Rs cr)

₹ 628.00

₹ 221.00

184.16%

₹ 589.00

6.62%

Diluted EPS (Rs)

₹ 24.65

₹ 8.68

₹ 23.12

Net Margins

14.81%

7.31%

14.74%

PAT for the September 2022 quarter was up 185% at Rs628 crore and it was up 6.62% on sequential basis. Operating profits from basic chemistry products triggered the spike in sales revenues. Beyond these apparent reason for the spike in profits, the company plans to get back into above interest average growth. Net profit margins at 14.81% in Q2FY23 is sharply higher compared to 7.31% in Q1FY22 and 14.74% in Q1FY23.

7 Views