Tata chem profit zooms

Tata Chemicals on Friday announced a 406 per cent jump in net profit for the quarter ended June 30, 2010 at Rs 215 crore as against Rs 43 crore in the year-ago period.

Tata Chemicals on Friday announced a 406 per cent jump in net profit for the quarter ended June 30, 2010 at Rs 215 crore as against Rs 43 crore in the year-ago period.

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While the company saw a 6 per cent rise in revenues at Rs 2,523 crore, it witnessed a 8.4 per cent drop in raw material expenses to Rs 688 crore, resulting in a rise in profit margin.

The company had incurred an expenditure of Rs 87 crore for the quarter ended June 2009 on restructuring of its overseas operations that resulted into a dip in the profits last year. The high growth in profits in percentage terms is also a result of the expenditure, which is not a part this year.