Tata Chemicals Q2 Review - Soda Ash Price Outlook Remains Encouraging: Motilal Oswal
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Motilal Oswal Report
Tata Chemicals Ltd.'s consolidated Ebitda came in below our estimate due to lower than expected performance in India and the UK business on higher power and freight cost.
Globally, soda ash demand picked up significantly, resulting in a tight demand-supply situation. Spot prices have correspondingly increased, which will benefit Tata Chemicals.
The challenging environment of increasing input costs (energy and freight) would partially offset performance going forward.
Factoring in its performance in Q2 we have reduced our FY22E profit after tax estimate by 6%, but have maintained our FY23E estimate.
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