Shares of Tata Chemicals rallied more than 11% to ₹1,060 apiece on the BSE in Wednesday’sWednesday’s trading session after the company posted strong first-quarter earnings. Tata Chemicals reported an 86% rise in its consolidated net profit to ₹637 crores during the first quarter ending June compared to ₹342 crores in the corresponding quarter of the previous fiscal.
The Tata Group chemical firm’s revenue from operations rose over 34% during Q1 FY23 to ₹3,995 crores from ₹2,978 crores in the same quarter last year.
“India business saw higher soda ash and bicarb realizations aided by strong market demand and tightness. EBITDA rose due to improved realizations, which offset a significant increase in raw material and energy costs during the quarter,” highlighted Motilal Oswal in a note.
Tata Chemicals chairman N Chandrasekaran
Last month, Tata Chemicals chairman N Chandrasekaran said that the company is focused on sustainability and committed to reducing its carbon emission by 30% by 2030. “The company is also focused on sustainability, and we are leveraging the whole sustainability movement to focus increasingly on green chemistry, embracing circularity, carbon reduction, and biodiversity,” Chandrasekaran said while addressing Tata Chemicals 83rd Annual General Meeting (AGM) virtually.
The company is focused on growing the essential products and scaling up substantially and deleveraging all the debt in all the international operations, and accelerating the commitment towards sustainability by adopting green chemistry, Chandrasekaran added. “Our newly commissioned carbon capture utilization facility in the UK is one such initiative in this direction,” he said.
In June, Tata Chemicals Europe officially opened the UK’sUK’s first industrial-scale carbon capture and usage plant, a move the Tata Group company said signals a key milestone in the race to meet the country’s net-zero targets. The 20 million pound investment was completed by Northwich-based Tata Chemicals Europe (TCE) in northwest England, one of Europe’sEurope’s leading producers of sodium carbonate, salt, and sodium bicarbonate.
Tata Chemicals is a science-led company with a portfolio that covers primary and specialty chemical products. Tata Chemicals shares have surged about 16% in 2022 (YTD) so far, and the chemical stock is currently hovering around its record high level of ₹1,158 apiece it had hit in August last year.