Tata Chemicals shares fall nearly 4 pc after posting Q3 net loss

Mumbai, Feb 4: Shares of Tata Chemicals on Tuesday dropped nearly 4 per cent or Rs 35.5 to trade at Rs 911.1 after the company reported a net loss of Rs 21 crore for the third quarter (Q3) ending December 2024.

Tata Chemicals' revenue from operations declined by 3.8 per cent to Rs 3,590 crore in Q3 compared to Rs 3,730 crore in the same quarter last year (Q3 FY24).

The company also saw a sharp decline in its operating performance, with EBITDA falling by 19.9 per cent to Rs 434 crore from Rs 542 crore a year ago.

The EBITDA margin for the quarter stood at 12.1 per cent, down from 14.5 per cent in the previous year’s corresponding quarter.

EBITDA refers to earnings before interest, tax, depreciation, and amortisation.

The company’s financials also reflected a rising debt burden, according to its stock exchange filing.

Tata Chemicals' gross debt increased by Rs 810 crore on-year at Rs 6,722 crore as of December 31, 2024.

Meanwhile, net debt rose by Rs 952 crore to Rs 5,329 crore, largely due to lower EBITDA and higher working capital requirements across its operations in the US, Kenya, and India.

"Overall Asia, including India, continues to experience growth, while other markets, including the US and Western Europe, are witnessing slight decline due to reduced demand for flat and container glass,” R Mukundan, Managing Director and CEO, Tata Chemicals, said.

The Chief Executive Officer further added that the company’s overall performance was down mainly due to lower soda ash pricing across geographies and higher fixed costs in the US due to a plant production outage during the quarter.

During the quarter, Tata Chemicals commissioned a 70 KTPA pharma salt plant in the UK as a part of a significant expansion in its specialty products portfolio.

Additionally, sales and production volumes of soda ash, bicarbonate, and salt were higher compared to Q3 FY24.