Tata Chemicals on Thursday reported a 3.66 percent decline in consolidated profit after tax (PAT) at Rs 160.85 crore for the third quarter ended December 2020. The company's PAT stood at Rs 166.97 crore during the corresponding period of 201920, Tata Chemicals said in a statement.
However, Tata Chemicals is expecting the export market to bounce back in current quarter, said R Mukundan, MD & CEO of the company. He said that they are expecting exports from US to be better than last year's levels in Q4. Demand in South-East Asia should also normalise by H1-H2 next year, he added.
“The market which Magadi faced a bit of pressure is South-East Asia. There the tourism industry is hit very hard which has led to container glass which goes into beverages and drinks, the demand not being high and that has really impacted them. We believe by H1-H2 of next year that demand would come back. But what Magadi has done smartly is to get lot of cost order in the system. So they have posted a very strong margin this quarter and it will continue to maintain a good set of numbers,” he said in an interview to CNBC-TV18.
Mukundan said that revenues of Rs 17,000 crore in next 4-5 years is doable. “Rs 17,000 crore is board approved plan and that guidance still remains. We are not way off from that. By the end of this year some of the projects will come on-stream and by 2022-23 almost 50 percent of the capital would be deployed and it will be on-stream. So, what we anticipate as an outcome of these investments on the Rs 2,600 crore we are putting on the ground in Tata Chemicals itself, we should be getting incremental revenue of about Rs 1,400 crore and an incremental contribution or EBIT margin of close to about Rs 600 crore. So that is work going on schedule,” he said.Watch the video for the full management commentary