Dalal Street Investments
Top

Tata Chemicals – Slightly better Q3

February 3, 2010

Tata Chemicals revenue down 25%yoy given lower realization on gas based urea and PAT up 83% led by – consolidation of Rallis India, strong volume growth in urea and off lower base of Q3FY09 PAT that was hit by one offs.

Soda ash sales in international operations improved 5%qoq but at lower prices. We expect muted performance in soda ash to continue due to ANSAC’s strategy of cutting prices to regain market share from Chinese producers will result in stable to lower prices ahead and ~20% overcapacity in global markets, as per industry reports, will keep soda ash prices under check medium term.

Urea production was up 114% yoy on 100% utilization this quarter vs a 40day closure in Q3FY09. Company mentioned that it intends to invest INR35bn to double urea capacity.

Tata Chemicals is expected to report an EPS of Rs 25.49 for FY10.

Comments

Got something to say?






Bottom