Tata Chemicals has reported 31 per cent increase in consolidated net profit at ₹318 crore (₹242 crore) in the December quarter largely due to tight control on cost and working capital.
Net sales were down 12 per cent at ₹3,464 crore (₹3,953 crore) in the quarter under review.
On a standalone basis, the net profit was up 27 per cent at ₹210 crore (₹165 crore) even as net sales dipped 21 per cent to ₹1,905 crore (₹2,416 crore).
Overall expenses were down 26 per cent at ₹1,625 crore (₹2,199 crore).
Lower sales volumes in chemicals and consumer portfolio business had impact on the company's standalone business.
All requisite formalities on the sale of the urea business to Yara International for ₹2,670 crore are progressing as per expectation, said the company in a statement on Wednesday.
The company recorded a gross debt of ₹8,103 crore, while net debt was at ₹5,883 crore as of December quarter. R Mukundan, Managing Director, said despite several challenges in India and other geographies the company registered better performance.
Strong focus on operational excellence helped maintain the steady performance of the domestic chemicals and consumer business.
However, in the short-term there was impact on performance post the government intervention on capping prices of pulses, he said.
The subsidy outstanding at ₹1,323 crore continues to exert pressure on fertiliser business though it showed good performance driven by tight focus on working capital and normal monsoon leading to healthy demand, he said.