Tata Chemicals net slips 43% to Rs 127 cr

MUMBAI: Tata Chemicals has recorded a 43% drop in net profit in the second quarter of the current fiscal due to sharp rise in raw material cost even after it recorded higher income.

It posted a net profit of Rs 127 crore in the September quarter against Rs 223 crore in the year-ago period. Net income grew 33% to Rs 2,990 crore.

“Rising input cost on account of higher commodity prices, in addition to some unanticipated plant shutdowns due to natural causes resulted in muted performance during the quarter,” said MD R Mukundan.

Tata Chemicals’ spending on raw materials grew 18% to Rs 826 crore while a fertiliser plant in Uttar Pradesh was shutdown for almost a month.

On the outlook, Mr Mukundan said the company is “optimistic of improved production and sales and consequently a stronger financial and operating performance.”