Tata Chemicals Q4 results: Net loss at ₹841 crore, revenue from operations drops 21% YoY

Tata Chemicals on Monday, April 29, reported a consolidated net loss and a double digit drop in its revenue from operations in its Q4 results.

The Tata Group company in its earnings report for the quarter and full financial year ended March 2024, released after the market hours on Monday, posted a net loss of ₹841 crore in Q4FY24, a substantial drop from the figures reported in the year-ago period.

Tata Chemicals had reported a profit of ₹692 crore in the year-ago period. This is the first quarterly loss the Tata Group company reported in the last 9 financial years.

The company's revenue from operations for the period fell over 21% to ₹3,475 crore in the March quarter compared to ₹4,407 crore in the year-ago period. On a yearly basis, Tata Chemicals revenue from operations stood at ₹15,421 crore in FY24, a drop of over 8% from ₹16,789 crore in FY23.

Tata Chemicals attributed the losses to a non-cash write-down of assets totalling₹963 crore in FY24, recognised as an exceptional loss in the books.

"The European soda ash market remained under pressure due to muted demand and margin pressure leading to a one-time non-cash charge of ₹963 crore in the UK. The Company’s overall sales volume grew sequentially from the previous quarter, despite adverse price movement on account of market factors," said R Mukundan, Managing Director &CEO, Tata Chemicals Limited.

The company was hopeful of the demand stabilising in the international market despite the ongoing geo political conflicts globally.

The Tata Group firm said that it was focused on the timely execution of project expansion and efficient cost management to attain desirable results.

The earnings before interest, tax, depreciation and amortisation dropped 54.09% year-on-year to ₹443 crore in the March 2024 quarter as against ₹965 crore in Q4FY23. Margins also declined to 12.74% compared to 21.89% a year ago.

Dividend announced

The board of directors of Tata Chemicals proposed a dividend of ₹15 per share for the financial year 2023-24.

The company’s board also approved a proposal to raise funds up to ₹2,000 crore through the issuance of non-convertible debentures on a private placement basis.

Tata Chemicals shares closed 1.97% lower at ₹1,099.85 apiece on the NSE on Monday.