Tata Chemicals is in the spotlight after announcing a loss of Rs 21 crore for the third quarter of FY25. Last year, during the same period, it made a profit of Rs 194 crore. A big reason for this loss was a charge of Rs 70 crore to help pay for laying off workers and shutting down machinery at their soda ash factory in Northwich, UK.
The company’s sales dropped by 3.8% compared to last year, totaling Rs 3,590 crore. Their earnings before interest, taxes, depreciation, and amortization (EBITDA) also fell by 19.9%, coming in at Rs 434 crore. This means their profit margin dropped to 12.1% from last year’s 14.5%.
On the debt side, Tata Chemicals reported Rs 6,722 crore in gross debt as of December 31, 2024, which is an increase of Rs 810 crore compared to last year. Their net debt rose by Rs 952 crore to Rs 5,329 crore because of decreased earnings and more money needed for operations in the US, Kenya, and India.
R Mukundan, the Managing Director and CEO, stated that while Asia, including India, is seeing growth, markets like the US and Western Europe are facing a slight decline due to lower demand for glass products.
As for the stock’s outlook, the average target price is Rs 937, indicating a 1% drop from current prices. A survey of 7 analysts suggests a ‘Sell’ recommendation for the stock.
On Monday, Tata Chemicals shares closed at Rs 945, down 2% on the BSE, while the overall market index fell by 0.41%. The stock has decreased by 13% in the last six months and 2% over the past three years. The company’s total market value stands at Rs 24,071 crore.
(Disclaimer: Any recommendations or opinions in this article are those of the experts and do not reflect the views of Niftystat.)
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