Tata Chemicals Shares Drop 2%; Reports a Net Loss in Q3 FY25 Results

Tata Chemicals Limited’s share price traded at ₹902.50 at 9:55 AM on the NSE, reflecting a decline of ₹44.05, or 4.65%, from the previous close of ₹946.55. The stock opened at ₹930.10, reaching a high of ₹935.95 and a low of ₹901.20 during the trading session. Today’s fall in the share price adds to yesterday’s loss of 2%.

Tata Chemicals Reports Net Loss in Q3 FY25

Tata Chemicals Ltd reported a net loss of ₹21 crore for the third quarter ending December 31, 2024, compared to a ₹194 crore profit in the same period last year. The company faced challenges from lower soda ash prices, particularly in Western markets, and higher fixed costs in the US due to a production outage.

The company’s revenue from operations decreased by 3.8% to ₹3,590 crore, compared to ₹3,730 crore in the previous year. EBITDA fell by 19.9% to ₹434 crore, with EBITDA margin dipping to 12.1%.

Increased Debt and Production Costs

Tata Chemicals’ gross debt rose to ₹6,722 crore, an increase of ₹810 crore YoY. This rise in debt was attributed to higher working capital requirements across its US, Kenya, and India operations. Despite these challenges, the company did commission a new pharma salt plant in the UK.

The CEO, R Mukundan, expressed optimism, noting that while the current demand-supply imbalance would persist in the short term, long-term stability was expected as sustainability trends supported growth sectors.

Recent Business Development: Restructuring of UK Operations

In November 2024, Tata Chemicals Europe Limited (TCEL), a wholly-owned subsidiary of Tata Chemicals, announced a significant capital investment of £60 million ( ₹655 crore) to build a new pharmaceutical-grade sodium bicarbonate plant in Northwich, UK.

This plant will have an annual production capacity of 1,80,000 tons, tripling TCEL’s existing capacity in the UK. The company plans to begin construction in 2025, with production expected to start in 2027.

This new plant will utilise a patented process, capturing carbon dioxide from energy generation emissions as a key raw material, meeting growing demand from pharmaceutical manufacturers. Additionally, TCEL has decided to cease production at its loss-making Lostock plant by the end of January 2025 as part of a restructuring effort.

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