Tata Chemicals reported a net loss for the quarter ended March 2013, hurt by impairment charges. During the quarter, the company reported consolidated loss of Rs 188 crore, compared with a profit of Rs 138.51 crore in the same quarter last year.
Results for the quarter included charges of Rs 514.83 crore, (Rs 50.62 crore in the year ago quarter), under exceptional items, towards impairment of assets. For the quarter, net income was Rs 3,361.77 crore (Rs 3,397.67 crore). Other income amounted to Rs 29.68 crore, compared with Rs 69.37 crore in the corresponding quarter last year. Net sales for the quarter also declined 2.18 per cent to Rs 3,391 crore.
For the twelve-month period, Tata Chemicals consolidated net profit, after minority interest and share of associates, declined by 52 per cent to Rs 400.40 crore (from Rs 837.59 crore).
Challenging times
Net income for the year rose 8 per cent to Rs 14,718.63 crore from Rs 13,658.98 for the 12-month period in 2012, while other income was Rs 140.20 crore (Rs 156.05 crore).
Managing Director R. Mukundan said: “With continued softness in the fertiliser segment, we expect a muted performance even though there is a positive tail wind from expectations of a normal monsoon as announced by the weather bureau. We expect times to be challenging, both domestically and internationally, and this, coupled with liquidity crunch due to delayed payment of subsidy, continues to drag the company’s performance.”'
Mukundan added: “Overall for the year, the domestic chemicals and consumer business registered a 36 per cent of earnings before interest and tax (EBIT) growth, whereas fertiliser had a 20 per cent fall in EBIT. Overall, the company registered a growth of 15 per cent in EBIT across segments.”'
The board has recommended a dividend of 100 per cent or Rs 10 per equity share of Rs 10 each for fiscal 2013.