Tata Chemicals Share Price

Company Overview

Company Journey

• 2017-18
  • Start building a 5,000 MT fructooligosaccharides production facility in Nellore, Andhra Pradesh.
  • The company is awarded with the prestigious Fair Business Practices Award at the 30th Jamnalal Bajaj Awards.
• 2018-19
  • TCL lists as one of the top 25 innovative Indian corporations.
  • The company starts recycling lithium-ion batteries.
  • Tata Global Beverages and TCL announce a merger of their consumer operations to form a firm specialising in consumer products.
• 2019-20
  • The company completes the Consumer Products Business's demerger as a step towards becoming a science-driven chemistry firm.
  • The company secures land in Gujarat's Dholera area, for the Energy Sciences vertical to build a brand-new manufacturing facility.

Business Highlights

• Soda Ash: Soda ash is used in making glass, soaps, cement, and detergents. It is also used in the processing of textiles and metals. Caustic soda is used to produce gypsum, rayon, and paper.
• Salt: TCL manufactures four types of salt: crystalline salt, iodised salt, pure salt, and vacuum salt. TCL produces around 3,50,000 tons of vacuum-evaporated iodised salt.
• Sodium Bicarbonate and other products like liquid bromine, hydrochloric acid, hydrobromic acid, and liquid chlorine.

Performance highlights

• The company's compounded profit growth and compounded sales growth between 2019 and 2022 has been measured to be 7%.
• Revenue increased at an annual rate of 4.68% between 2017 and 2022 compared to the industry average of 13.17%.
• The company's market capitalisation as of 2022 is ₹27,195 crore.
• For the fiscal year that ended on March 31, 2022, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) fell by -14.92%.
• TCL's total operating revenue was ₹3721 crore, and equity capital was ₹255 crore for the year ended 31st March 2022.
• The company's total assets have increased by 8.96% in 2022, while the liabilities have fallen by -16.08%.
• The company's stock return between 2019 and 2022 has been measured at 68.32%. And its stock return for the period between 2017 and 2022 has been measured at 48.41%.
• From 2019 to 2022, TCL has maintained a ROE (Return On Equity) of 21.83% and ROCE (Return on Capital Employed) of 22.67%.

Management

• Ratan N Tata (Chairman Emeritus)
• R Mukundan (MD and CEO)
• C V Natraj (Ind. Non-Executive Director)
• S Padmanabhan (Non-Executive Non Ind.Director)
• Vibha Paul Rishi (Ind. Non-Executive Director)
• Zarir Langrana (Executive Director)
• N Chandrasekaran (Chairman, Non Ind and Non-Executive Director)
• Rajiv Dube (Ind. Non-Executive Director)
• Padmini Khare Kaicker (Ind. Non-Executive Director)
• K B S Anand (Ind. Non-Executive Director)

Investor Relations Contact

Industry Overview

• Pidilite Industries Ltd- ₹1,35,269 crore
• SRF Ltd - ₹70,860 crore
• Gujarat Fluorochemical- ₹39,992 crore
• Solar Industries- ₹37,517 crore
• Deepak Nitrite- ₹28,890 crore
• Coromandel Intl- ₹27,172 crore
• Aarti Inds- ₹25,948crore
• Navin Fluorine International- ₹22,099 crore

Risks and concerns

• Risk of high energy costs
  The industry faces the risk of increasing energy source prices, such as those for coal, natural gas, and oil, that may affect variable costs.
• Ageing workforce
  Chemical firms face the risk of not being able to replace the process expertise and experience of their best-talented employees who are approaching retirement. Successfully replenishing the skills pipeline is affected by competitors outside the sector. This is because the younger workers generally chose less dangerous and relatively un-stressful employment that pays comparably.
• ESG (environmental, social, and governance) goals are being scrutinised more closely
  ESG-related initiatives for chemical companies are anticipated to be thoroughly examined. Failing to reach these goals may result in serious reputational risks, the inability to raise funds, and possible regulatory risks.
• Risk of digitalisation
  The industry faces the risk of failing to embrace digitalisation as a crucial tool for company growth.
• Safety risk
  Failure to guarantee that safety hazards (related to behaviour, workplace, processes, and products), such as those of transmissible diseases like COVID-19, are contained is a potential risk.
• Instability in the supply chain
  Current geopolitical and economic developments have made the supply chain issues that began in 2020 more difficult. This frequently results in higher costs for critical raw materials, equipment, and machinery. Furthermore, lengthy delays in delivery have caused businesses to close down facilities or miss contractually required delivery dates.

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