Why Tata Chemicals stock is on fire today

Tata Chemicals, a leading supplier to glass, detergent, industrial and other chemical makers besides its presence in the crop protection business through its subsidiary company Rallis India, has been on fire on Wednesday.

The company’s stock shot up nearly 13% and was quoting at Rs 1,078 each during mid-day trades in a flat Mumbai market.

Tata Chemicals had come up with robust financial performance for the first quarter as it declared its numbers on Tuesday evening. The stock markets were closed for trading on Tuesday.

Consolidated Highlights for Q1 FY23

* Revenue from operations stood at Rs 3,995 crore, up 34% from Rs 2,978 crore in Q1 FY22.

* Profit after tax from continuing operations stood at Rs 641 crore compared to Rs 342 crore in the year-ago period.

* Soda ash realizations have increased across units and in particular, the US and Kenya export pricing remains strong and firm.

* Cost environment is likely to stay at elevated levels in the near term.

* Rallis India recorded a consolidated revenues of Rs 863 crore for the quarter, up 16% over the previous year. It continues its focus to launch newer products and reduce dependence on imported intermediates; started developing domestic suppliers for certain items

Standalone Highlights for Q1 FY23

* Revenue from operations stood at Rs 1,225 crore, up 48% from Rs 828 crore in Q1 FY22.

* Profit after tax from continuing operations was Rs 381 crore versus Rs 228 crore in the year-ago period.

* Soda ash demand is strong across all application segments. In general, material is in short supply in the Indian market; demand for soda ash and bicarb is expected to remain firm and supply tightness likely to continue.

* Salt volumes continue to grow on a yearly basis.

* Growth in the standalone revenue is largely driven by higher realizations across product portfolio.

Management Speak

R Mukundan, Managing Director and CEO, Tata Chemicals, said the global demand environment continues to be positive across our products and their applications.

“While this positive momentum is expected to continue in the near to medium term, the input side environment especially energy remain at elevated levels coupled with logistic challenges that continue to be seen in the market,” he said.