Q1 Results: Tata Chemicals Bets On Consumer, Food Segments To Drive Sales
Tata Chemicals’ consumer products business grew 33 percent to Rs 438 crore during June-ended quarter.
Tata Chemicals Ltd. is betting on its consumer and specialty foods segment to drive nearly half of its sales going forward.
The chemical maker aims for the sales of its existing products—salt, spices, pulses, multi-grain instant mix and ready-to-eat foods to touch Rs 4,000-Rs 5,000 crore in the next five years, Managing Director R Mukundan told BloombergQuint in a post-earnings interaction.
The growth rate in both these segments will track faster than the growth rate in the chemistry business.R Mukundan, MD, Tata Chemicals
Food and beverages account for a fifth of India’s $52.75 billion fast-moving consumer goods market, according to market research firm India Brand Equity Foundation. The category is also expected to grow faster personal and home care space in India, according to Nielsen India.
Key Q1 Earnings Highlights (YoY)
- Sales rose 9.5 percent to Rs 2,769 crore.
- Basic chemistry products sales rose 3 percent to Rs 1,941 crore.
- Consumer products grew 33 percent to Rs 438 crore.
- Specialty products rose 25 percent to Rs 584 crore.
- Profit rose 14 percent to Rs 270 crore.
- Operating profit margin remained flat at 19 percent.
- Consolidated debt fell 19 percent from March-end to Rs 1,506 crore.
Shares of Tata Chemicals fell as much as 3.4 percent to trade nearly at a six-month low at Rs 653.