- 06 Aug 2024
- ICICI Securities
Tata Chemicals Q1FY25- flattish sequential sales growth ex-Rallis
TATACHEM - 1063 Change: 10.80 (1.03 %)News: Revenues grew 9% QoQ to ₹ 3789 crore tracking ~80% growth in Rallis (20% of the revenues). Ex-Rallis however revenues stood at ₹ 3006 crore, flattish on QoQ basis. EBITDA grew 30% QoQ to ₹ 574 crore and margins improved ~240 bps to 15.1% as sharp drop in GPM was mitigated by significant savings in power & fuel, freight costs and other expenses.
Views: While Soda ash volumes at the consolidated level declined sequentially, the realization improved especially in North America. Overall demand for soda ash was stable during the quarter on account of demand for flat glass, container glass and solar glass globally. China demand continued to be stable, American demand is flat while Europe experienced muted demand. In India, demand was stable across all end-use industries such as flat glass, container glass and solar glass. The management is guiding for ₹ 400 crore EBITDA improvement in FY25 based on expected recovery in Europe and better cost control mechanism. The management maintained cautious stance for overall recovery till December.
Impact: Neutral