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Tata Chemicals’ shares declined by 4% on Tuesday, February 4, reaching a new 52-week low of Rs 906.65 on the BSE
Tata Chemicals Share Price (Representational Image)
Tata Chemicals Share Price Today: Tata Chemicals’ shares declined by 4% on Tuesday, February 4, reaching a new 52-week low of Rs 906.65 on the BSE. This drop follows the company’s announcement of a net loss of Rs 21 crore for Q3FY25, in contrast to a net profit of Rs 194 crore during the same period last year.
At 09:48 am, shares of Tata Chemicals were trading at Rs. 905.40 on the NSE, following the company’s announcement of a net loss for Q3FY25.
The company’s performance was impacted by lower soda ash prices and a one-time exceptional loss of Rs. 70 crore. This exceptional loss was related to employee termination benefits, decommissioning of plant and machinery, and other closure-related expenses from the cessation of soda ash production at the Lostock plant in Northwich, UK.
Revenue from operations decreased by 3.8% year-on-year, reaching Rs. 3,590 crore compared to Rs. 3,730 crore in the same period last year. The operating margin also contracted to 12.1% in Q3, down from 14.5% in the previous year.
Management Commentary
R. Mukundan, Managing Director and CEO of Tata Chemicals, stated in an exchange filing that the company’s overall performance declined due to lower soda ash pricing in various regions and higher fixed costs in the US, stemming from a plant production outage during the quarter.
Looking ahead, Mukundan acknowledged that challenges are likely to persist in the short term. However, he noted that the demand-supply imbalance should improve and stabilize over the long term, driven by growth sectors aligned with sustainability trends.
As of December 31, 2024, the company’s gross debt stood at Rs. 6,722 crore, an increase of Rs. 810 crore from the previous year, while net debt rose by Rs. 952 crore to Rs. 5,329 crore due to lower EBITDA and higher working capital requirements across the US, Kenya, and India.