Synopsis
Tata Chemicals stock fell nearly 4% following the announcement of a net loss of Rs 21 crore for Q3 ending December 2024. Revenue from operations declined by 3.8%, and EBITDA dropped by 19.9%, reflecting the company's challenges in the current market.Key Takeaways
- Tata Chemicals shares fell nearly 4%.
- Reported a net loss of Rs 21 crore for Q3.
- Revenue declined by 3.8% to Rs 3,590 crore.
- EBITDA decreased by 19.9% to Rs 434 crore.
- Gross debt rose to Rs 6,722 crore.
Mumbai, Feb 4 (NationPress) The stock of Tata Chemicals fell by almost 4 percent or Rs 35.5, reaching Rs 911.1 after the firm announced a net loss of Rs 21 crore for the third quarter (Q3) ending December 2024.
Tata Chemicals experienced a 3.8 percent drop in revenue from operations, totaling Rs 3,590 crore in Q3, compared to Rs 3,730 crore during the same period last year (Q3 FY24).
The company reported a significant decline in operating performance, with EBITDA decreasing by 19.9 percent to Rs 434 crore from Rs 542 crore year-over-year.
The EBITDA margin for the quarter was 12.1 percent, down from 14.5 percent in the same quarter last year.
EBITDA stands for earnings before interest, tax, depreciation, and amortization.
According to its stock exchange filing, the company’s financials also indicated a growing debt burden.
Tata Chemicals' gross debt rose by Rs 810 crore year-over-year, reaching Rs 6,722 crore as of December 31, 2024.
In the same vein, net debt increased by Rs 952 crore to Rs 5,329 crore, largely attributed to falling EBITDA and heightened working capital needs across its operations in the US, Kenya, and India.
R Mukundan, Managing Director and CEO of Tata Chemicals, remarked, "Overall Asia, including India, continues to see growth, while other regions like the US and Western Europe are experiencing slight declines due to reduced demand for flat and container glass."
The CEO further noted that the company’s overall performance decreased mainly due to lower soda ash pricing globally and increased fixed costs in the US due to a plant production outage during the quarter.
During this quarter, Tata Chemicals successfully launched a 70 KTPA pharma salt plant in the UK, marking a crucial expansion in its specialty products range.
Moreover, sales and production volumes of soda ash, bicarbonate, and salt were higher compared to Q3 FY24.