Tata Chemicals stock zooms 9% on strong Q1 earnings

Shares of Tata Chemicals zoomed 9 per cent today after the Tata Group firm announced a 86.25 per cent increase in net profit for the quarter ended June 2022. Tata Chemicals reported a consolidated net profit at Rs 637 crore during the quarter ending June 2022 against a net profit of Rs 342 crore in the corresponding quarter of the previous fiscal.

Subsequently, the stock rose 8.92 per cent to Rs 1,042.55 against the previous close of Rs 957.15 on BSE. The stock opened 4.47 per cent higher at Rs 999.95 against the previous close of Rs 957.15 on BSE. The large cap stock has gained 22.36 per cent in a year and climbed 15.49 per cent this year. Market cap of the firm rose to Rs 26,270 crore.

Total 1.43 lakh shares of the firm changed hands amounting to a turnover of Rs 14.70 crore. The stock hit an all-time high of Rs 1,158 on October 18, 2021 and fell to a 52-week low of Rs 773.90 on July 1, 2022.

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At 9:44 am, the share was trading 8 per cent higher at Rs 1,034.40 on BSE. Revenue from operations climbed 34.15 per cent in Q1 at Rs 3,995 crore compared to Rs 2,978 crore in the corresponding period of last fiscal.

"The operating performance reflects improved realisations, efficient cost management and optimum capacity utilisation in challenging market conditions, and in the context of rising input and energy costs," the firm said.

R Mukundan, Managing Director and CEO, Tata Chemicals said, "The global demand environment continues to be positive across our products and their applications. While this positive momentum is expected to continue in the near to medium term, the input side environment especially energy remain at elevated levels coupled with logistic challenges that continue to be seen in the market. The team has shown agility and has responded well by staying close to customers and supply chain partners. We continue our long-term focus on excellence by leveraging digitalization and sustainability. In addition to operational excellence, we continue to focus on executing growth capex."

Tata Chemicals Limited, is a leading supplier in the glass, detergent, industrial and chemical sectors. The company has a strong position in the crop protection business through its subsidiary company Rallis India Ltd. Tata Chemicals has world-class R&D facilities in Pune and Bangalore.