MOSL: TATA CHEMICALS (Buy)-Annual Report Update-India biz on a strong footing-Foreign operations yet to recover
Tata Chemicals | Annual Report Update: India biz on a strong footing; Foreign operations yet to recover
(TTCH IN, Mkt Cap USD2.2b, CMP INR606, TP INR709, 17% Upside, Buy)
We pored over Tata Chemicals’ (TTCH) FY19 annual report to analyze its performance across key product categories and geographies. Key highlights:
Soda ash – India only region to deliver revenue growth; Europe/NA/Magadi under pressure
- Among the various geographies where TTCH operates its soda ash business, only India delivered revenue growth (+16%) in FY19, driven by a realization improvement.
- Tata Chemicals North America (TCNA) revenue declined 4% to USD476m in FY19 owing to a 5% drop in volumes due to production breakdown, partly offset by a 1% improvement in realization.
- UK operations turnover was down 6% to GBP158m in the year due to a decline in soda ash and sodium bicarbonate volumes by 18% and 5%, respectively, partly offset by an 11% improvement in blended realization. Lower volumes can be attributed to the planned reduction in sales of low-margin imported soda ash.
- Tata Chemicals Magadi (TCML) revenue was down 4% to USD73.8m on account of a 15% decline in volume, partly offset by a 13% improvement in realization.
- However, in INR terms, the company exhibited revenue growth across these regions due to appreciation in the USD and the GBP by 9% and 7%, respectively.
Tata Chemicals is engaged in the production and selling of interests that focus on LIFE - living, industrial and farming essentials. Co.'s products are used in a wide range of pharmaceutical, food processing and industrial applications. Living essentials - Tata Salt, I-Shakti, Tata Salt Lite; Tata Salt Flavoritz, Tata Salt Plus, i-Shakti Dals and Tata Swach. Industry essentials - soda ash; sodium bicarbonate; chemicals: caustic soda, chlorine based products, bromine based products, gypsum, sodium tripolyphosphate, phosphoric and sulphuric acids; industrial salt; and cement: Tata Shudh. Farm essentials - fertilizers: Tata Paras urea, DAP, NPK, and SSP.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.