Tata chemicals share: Tata Group company Tata Chemicals has released its September quarter results. In the second quarter of the current financial year, the company’s net profit declined by 54.67 percent to Rs 194 crore. Tata Chemicals gave this information to the stock markets. In the same quarter of the last financial year, the company’s profit was Rs 428 crore. The company’s operating income remained stable at Rs 3,999 crore during the quarter. In the same quarter of the previous financial year, it was Rs 3,998 crore.
What is the reason for decline in profits?
Overall demand for soda ash in India remained stable, while demand declined in some sectors such as container glass in the US and Europe. R Mukundan, managing director and chief executive officer (CEO), Tata Chemicals, said unexpected heavy rains in July and August affected operations at Mithapur, leading to lower production compared to the previous quarter, impacting margins. However, he said the company’s overall performance was better than the previous quarter due to higher realization of soda ash as well as higher sales volumes.
share status
Talking about Tata Chemicals share, it fell by 2.41% and closed at Rs 1073.70. On Thursday, the fourth day of the week, this share had fallen to a low of Rs 1065.35 during trading. The share was at a high level of Rs 1349.70 on March 2024. The share was at Rs 933 on 29 February 2024. This is the stock’s 52-week low.
Company raised Rs 1700 crore
Last August, Tata’s company Tata Chemicals had raised Rs 1,700 crore by issuing non-convertible debentures (NCDs) to investors on private placement basis. The company said in a communication to the stock exchange that an internal committee constituted by the board of directors has approved the proposal to allot 1,70,000 NCDs. The value of each of these NCDs is Rs 1 lakh. The company said that a total of Rs 1,700 crore has been raised by issuing NCDs for three years. Non-convertible debentures have been issued on private placement basis to identified investors.
