Tata Chemicals posts good set of Q4FY22 numbers

News: Tata Chemicals reported revenue growth of 32% YoY to Rs 3480.7 crore against our estimates of Rs 3308.4 crore, led by growth in the basic chemical segment (+37% YoY). The growth in the basic chemical was largely led by improved realisations across key geographies. EBITDA was increased by 133% YoY to Rs 657.4 crore against our estimates of Rs 581.9 crore. Adjusting exceptional income to the tune of Rs 60 crore for income tax refund, adjusted PAT remained at Rs 408 crore against our estimates of Rs 311 crore. The delta is largely on account of lower taxes (8% against our estimates of 22%).

Views: The company witnessed an improvement in soda ash realisation across all units. Since there is an improvement in the demand environment across end user industries along with no large capacity addition across the globe to support soda ash prices ahead.

Impact: Positve