Tata Chemicals H1 FY2010-11 consolidated PAT up 29 per cent to Rs343 crore
October 29, 2010

H1 FY11 Consolidated Financial Highlights
	Net sales at Rs5,512 crore; up 19.6 per cent
	Profit from operations at Rs717 crore; up 9 per cent
	PBT at Rs572 crore; up 32.7 per cent
	PAT after minority interest at Rs343 crore; up 29 per cent

Business Highlights
	Soda ash demand growing at over four per cent
	Sodium bicarbonate demand growth at over eight per cent
	Tata Salt sales increase 10 per cent
	I-Shakti brand extended to pulses – introduced after closely working with the farmer
	Fertiliser demand in core command areas healthy
	Customised fertiliser facility at Babrala commissioned
	Tata Swach sales strong at over 50,000 units per month
	GCIP sales volumes too showing encouraging trend

Tata Chemicals, a leading manufacturer of chemicals, fertilisers and food additives, today, announced its consolidated and standalone financial results for the quarter ended September 30, 2010. The company is the second-largest manufacturer of soda ash and the third-largest producer of sodium bicarbonate in the world, apart from being the leader in the Indian market. Tata Chemicals also enjoys leadership in the Indian edible salt market and is the most efficient manufacturer of urea fertiliser in the country.

Commenting on the company’s performance for Q2 FY2010-11, R Mukundan, managing director, Tata Chemicals, said:

“We are witnessing an encouraging environment for all our businesses both domestically and overseas. Our agri-business has taken a significant step forward with the launch of our first customised fertiliser at Babrala. We believe there is considerable potential for fertilisers for specific crops and conditions, with farmers looking to enhance crop yield and productivity. Our close association with the farmer has also enabled us make our entry into pulses.
Soda ash and fertiliser demand growth continues to be strong. However input costs are also rising significantly, putting pressure on our margins. Additionally some unanticipated plant shutdowns, mainly due to natural causes, resulted in muted production volumes during the quarter under review. These have now been addressed.

We are optimistic of improved production and sales and consequently a stronger financial and operating performance going forward.”

Year – on – year performance comparision
H1 FY2010-11 (April 2010 — September 2010) v/s H1 FY2009-10 (April 2009 — September 2009)
	Net sales at Rs5,512 crore compared to Rs4,609 crore in H1 FY2009-10, an increase of 19.6 per cent.
	Profit from operations at Rs717 crore compared to Rs657 crore in H1 FY2009-10, an increase of 9 per cent.
	PBT stood at Rs572 crore; up 32.7 per cent from Rs431 crore in the corresponding period last year.
	PAT (after minority interest) increased by 29 per cent to Rs343 crore from Rs265 crore.

Segmental performance

Soda ash
	Domestic demand growth for soda ash at four per cent .
	Robust sodium bicarbonate demand growth at over eight per cent.
	Lower production volumes at GCIP consequent to fire.
	Operations at Mithapur impacted by floods and replacement of calciner.
	Higher coke and coal prices pressure Magadi operations’ margins.

Consumer products
	Tata Salt sales increase by nine per cent in Q1.
	Tata Chemicals remains the market leader with 62 per cent market share in the national branded segment.
	I-shakti sales growth strong at over 20 per cent.
	I-shakti brand extended to introduce pulses.
	Tata Swach is now available in 12 states including Bengal, Maharashtra, Karnataka, Delhi and other north Indian markets.
	Tata Swach wins two prestigious awards
	Gold Award 2010 from Wall Street Journal Asia in partnership with Credit Suisse. ‘Best product innovation’ award from ICIS 2010.

Fertilisers
	Fertiliser demand continues to be stable in India.
	Ammonia convertor breakdown impedes volumes — converter now fully operational.
	First customised fertiliser facility commissioned at Babrala.