Higher revenues and operational efficiencies drive first-quarter profits
July 31, 2002

	Revenues increase by 24 per cent to Rs 362 crore from Rs 291crore
	Operating profit higher by 34 per cent, reach Rs 109 crore
	Profit after tax up 158 per cent to Rs 34 crore from Rs 13 crore

Announcing the results for the first quarter of the financial year 2003, Prasad Menon, Managing Director, Tata Chemicals, said, "Our performance in the current quarter demonstrates the steady progress made towards achieving stated objectives in core businesses. Current initiatives being implemented by the company, combined with our leading presence across identified segments provide us with a strong platform for future growth."

Highlights for first quarter of financial year 2003 (April-June 2002) versus first quarter of financial year 2002 (April-June 2001)

	Total revenues increase by 24 per cent to Rs 362 crore from Rs 291 crore and include Rs 13 crore interest on tax refunds.
	Operating profits advance 34 per cent to Rs 109 crore from Rs 81 crore.
	Efficient working-capital management and debt-restructuring drive continued reduction in interest cost by 17 per cent to Rs 26 crore from Rs 31 crore.
	Profit before tax up 213 per cent to Rs 53 crore from Rs 17 crore.
	Net profit after current and deferred tax higher by 158 per cent to Rs 34 crore from Rs 13 crore.

Note: Operations of the inorganic chemicals business were impacted by the fire at Mithapur during the first quarter of the previous year. As such the figures for the corresponding period are not comparable

Business and operations

	Internal initiatives coupled with encouraging sectoral trends contribute to progressive business outlook.
	Renewed export focus post-normalisation of operations at Mithapur. Exports in first quarter of financial year 2003 at 20,661 MT compared with 34,000 MT for the whole of previous year.
	Sustained benefits from 'Manthan' lead to continued increase in overall operational efficiencies. Continuous progress towards the objective of becoming one of the lowest cost producers of synthetic soda ash globally.
	Implementation of suggestions derived from joint workshops with customers leads to stronger relationships.
	Continued distribution and logistics efficiency contribute to better working capital management.

	Total sales increase to 86,000 MT, an increase of 43 per cent over corresponding quarter of financial year 2002.
	Consolidation in markets across geographies by re-organising distribution structure in east and south India.
	Successful test launch of second salt brand, Samundar, in the economy category of solar refined salt, commercial launch in Tamil Nadu expected in second quarter of financial year 2003.
	Steady progress on initiatives aimed at addressing export markets.

	Multiple initiatives being planned through Tata Kisan Kendras to assist farmers address possible drought scenario in North India. Effect on agriculture may have an adverse impact on urea demand.
	Maintained leading presence in the demand intensive markets of the country

Some of the statements in this document that are not historical facts are forward looking statements. These statements are based on the present business environment and regulatory framework. We assume no responsibility for any action taken based on the said information, or to update the same as circumstances change.