Tata Chemicals shares rose by 2.2% on Thursday, reaching Rs 844.3 on the BSE, following the announcement of a consolidated net loss of Rs 56 crore for the quarter ending March 31. This loss is significantly lower than the Rs 850 crore loss reported in the same period the previous year.
Revenue for the March quarter increased slightly by 1% year-on-year to Rs 3,509 crore, compared to Rs 3,475 crore in Q4FY24, amid ongoing pricing pressures globally. EBITDA saw a decline of 26% year-on-year, falling to Rs 327 crore from Rs 443 crore in the previous year. The EBITDA margin also decreased to 9.3% from 13.8%, driven by rising costs.
The company’s board has proposed a dividend of Rs 11 per share (110%) for FY25, pending shareholder approval at the 86th Annual General Meeting (AGM). If approved, the dividend will be distributed within five days of the AGM, after applicable taxes are deducted.
Additionally, Tata Chemicals’ board has sanctioned a plan to raise up to Rs 200 crore through term loans and/or non-convertible debentures (NCDs) via private placement. An internal committee will finalize and execute this plan.
R. Mukundan, Managing Director & CEO of Tata Chemicals, noted the challenging market conditions, with growth in India contrasted by slight declines in China, the US, and Western Europe due to reduced demand for flat and container glass. Other regions such as Asia (excluding China and India) and the Americas (excluding the USA) exhibit strong demand, with a slight decline in Africa.
Despite a softening demand-supply balance and ongoing tariff uncertainties, the medium- and long-term outlook remains positive due to sustainability trends.
According to Trendlyne, the average target price for Tata Chemicals’ stock is Rs 826, with a consensus recommendation of ‘Sell’ from seven analysts. On Wednesday, the shares closed 1.25% higher at Rs 826.3 on the BSE, while the Sensex increased by 0.13%. The stock has decreased by 20% year-to-date and 26% over the past six months, with a market capitalization of Rs 21,050 crore.
