Enhanced operational efficiencies and prudent financial management drive earnings
January 24, 2003

	Revenues increase to Rs 461 crore from Rs 388 crore
	Profit before tax up 32 per cent to Rs 81 crore
	Profit after tax up 20 per cent to Rs 56 crore

Announcing the results for the third quarter of the financial year 2003, Prasad Menon, Managing Director, Tata Chemicals, said, "Our performance signifies enhanced operating progress across all our businesses. It demonstrates the gains made from the implementation of efficient cost structures and the creation of a stronger market position in soda ash, salt and urea operations. Our cost control initiatives are gaining momentum and this combined with our marketing-led approach will support our growth and competitive position at a global level."

Third quarter of the current year (October-December 2002) versus third quarter of the previous year (October-December 2001)

	Income from operations increased by 19 per cent to Rs 461 crore from Rs 388 crore.
	Operating profits at Rs 117 crore compared to Rs 123 crore.
	Third quarter of financial year 2002 operating profit includes the addition of a loss of profit claim of approximately Rs 12 crore. Third quarter of financial year 2003 figure also includes a charge of Rs 11 crore as escalation claim on account of urea business operations.
	Profit before tax at Rs 81 crore as compared with Rs 61 crore.
	Profit after tax up 21 per cent to Rs 56 crore as compared to Rs 46 crore.
	Basic and diluted EPS (not annualised) of Rs 3.07 for third quarter of financial year 2003.

Nine months current year (April-December 2002) vesus nine months previous year (April-December 2001)

	Income from operations is at Rs 1,262 crore compared with Rs 1,066 crore.
	Operating profits recorded at Rs 351 crore compared with Rs 309 crore.
	Profit before tax increases 56 per cent to Rs 207 crore from Rs 133 crore.
	Profit after tax up 33 per cent to Rs 137 crore as compared to Rs 103 crore.
	Basic and diluted EPS (not annualised) of Rs 7.56 for nine months ended December 31, 2002.

Business and operations

Soda ash business

	Highest-ever quarterly export volume achieved, 31,000 MT, compared with 34,000 MT the whole of financial year 2002.
	Marketing infrastructure revamped to expand key account relationships. Key account managers appointed to ensure optimal tracking of large customer requirements and market sensitivities.
	Establishment of long-term arrangements with large clients enable company to forge stronger alliances and explore greater operational synergies.
	Improved supply chain management and inventory control drives logistical efficiencies, minimises response times and contributes to efficient working capital management.

Salt business

	Tata Chemicals continues to be the driver of the category, increasing presence across all zones.
	Grows market share by 18 per cent (year-on-year) in a segment displaying degrowth. Tata Salt's sales presently comprise 36.5 per cent of the National Branded Segment, which is equal to the combined shares of the next three national brands (Ref: ORG Marg Research).
	Separate salt SBU set up to enable optimal mapping of growth opportunities, stronger marketing and distribution presence and improved penetration levels.
	New positioning platform Desh Ka Namak increases brand pull and strikes emotional chord with audiences across the country.
	Strong brand salience sees 'Tata Salt' ranked 18th in AC Nielsen's global brand equity index.

Urea business

	Maintains leading presence in the demand-intensive markets of the country.
	Leverages the well-developed Tata Kisan Kendras distribution network to widen fertiliser offerings by outsourcing and trading a variety of high demand fertiliser grades.

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.