Tata Chemicals’ consolidated net profit was 14% up, year-on-year at Rs 146 crore for the quarter ending March 31, 2011 and net sales grew 16% to Rs 2,658 crore during this period, the company said on Monday.
While the domestic business of Tata Chemicals was dragged down by input cost pressures and plant shutdown, the overseas subsidiaries reported a good growth.
“Fertiliser business will be under pressure. Energy cost continues to be an issue. Demand for fertilisers is strong but pricing will be an issue,” said R Mukundan, managing director, Tata Chemicals, referring to lowering of subsidy rates for various fertiliser products.
The company is raising $375 million through bond and term loan for its various expansion plans for its facilities in Gabon, Kenya and US.
Mukundan said there was a healthy demand for the company’s consumer products such as salt, pulses and water purifier. Tata Chemicals’ branded salt business grew 10% last fiscal and the company holds 62% of the domestic market.
The company launched ‘I-shakti dal’ pulses in Delhi during last fiscal and sold 1,000 tonnes.The company has invested $15 million in bio fuel production in Mozambique.
The company is expanding its domestic salt capacity by 200,000 tonnes by investing R180 crore.
Mukandan said that the company will hold the capacity doubling at Babrala, awaiting policy clarity on gas allocation and pricing.