Tata Chemicals recovers from early losses despite a disappointing Q3
![Tata Chemicals recovers from early losses despite a disappointing Q3 Tata Chemicals recovers from early losses despite a disappointing Q3](https://images.moneycontrol.com/static-mcnews/2024/01/stocks_sensex_nifty-770x433.jpg)
In the last three months, the stock has gained a marginal 2 percent
Shares of Tata Chemicals Limited recovered from early losses to trade 1.7 percent higher at around noon on January 6, a day after the company reported a 60 percent drop in net profit in the December quarter.
Net profit declined to Rs 158 crore, while revenue was down 10 percent to Rs 3,730 crore from the year-ago qurater. The company cited tepid demand across key market segments for the poor performance.
Soon after the market opened, the stock had slipped 4.4 percent but then made a recovery. At 11.20 am, the stock was trading at Rs 993 on the NSE, up 1.5 percent from the previous close.
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Tata Chemicals’ EBITDA plunged 41.2 percent to Rs 542 crore accompanied by a decline in margins at 14.5 percent.
“The company’s performance is lower as compared to last year’s performance, due to pricing pressure in all regions and lower volumes. Especially in the US volumes were lower by 80,000 MT due to plant shutdown and rail car shortage, which led to lower absorption of fixed costs
and increase in fixed costs during the quarter,” it said in its investor presentation. “Container and flat glass sectors significantly impacted in Europe. Latin America is also experiencing a slowdown, especially in lithium.”
The company also added that Rallis’ domestic business registered a volume growth with overall business registering good improvement in margins. “Rallis’ international business, though, is facing some challenges”.
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