08 August 2011 16:48 [Source: ICIS news]
LONDON (ICIS)--Tata Chemicals’ first-quarter net profit fell 7.4% year on year to Indian rupee (Rs) 2.0bn ($44.7m), the India-based company said on Monday.
The company did not recognise subsidy income of Rs310m on opening stock of raw materials for phosphate and potash fertilizers in accordance with a recent office memorandum issued by the Department of Fertilizers. Had Tata recognised the subsidy income, its net income would have been Rs230m higher, or 3.2% higher compared with the same quarter last year, it said.
Total net sales for the quarter ending on 30 June rose 17.1% year on year to Rs29.54bn as demand improved for all its major products, Tata said in a statement filed with the Bombay Stock Exchange.
However, the company added that rising input costs were beginning to have an impact on earnings and demand, particularly for soda ash.
“Our healthy operating performance is reflective of the traction we are witnessing in out international businesses driven by strong demand across segments,” said Tata managing director Ramakrishnan Mukundan.
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The company’s operating profit for the quarter rose 1.7% year on year to Rs5.27bn.
($1 = Rs44.71)
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