Tata Chemicals net sales rise 21 per cent

Tata Chemicals net sales rise 21 per cent A Tata group unit, Tata Chemicals has reported an increase of 21 per cent in its net sales to Rs 3,540 crore in the second quarter of the financial year.

The company's consolidated net profit more than doubled to Rs 275 crore even as the company had to deal with increased costs. It was able to increases prices due to healthy demand for all its products including soda ash, fertiliser and chemicals.

The cost of raw material consumption increased 26 per cent to Rs 1,052 crore in the period. The performance this quarter cannot be compared with the earlier quarter as it acquired 100 per cent stake in British Salt, UK that accounted for a net profit of Rs 27 crore in the overall profits in the second quarter.

Mr R. Mukundan, Managing Director said that the company was able to manage the increase in costs by improving operational efficiency and it also had to pass on some increase in costs to the customers.

"The demand for soda ash was sustainable despite the economic crisis in the Euro Zone, but if the trouble continues the construction and automobile sector will be badly hit thus depressing the demand," he said.

The Tata group's chemical and fertiliser flagship is now aiming to generate Rs1,000 crore revenues in two years from the brand of pulses that was launched last year. It is aiming to increase its i-shakti brand of pulses to a sales volume of one lakh tonne per annum by fiscal 2014.