- 04 May 2023
- ICICIdirect Research
TATA CHEMICALS REPORTS STELLAR Q4FY23 RESULTS BEATING OUR ESTIMATES ON ALL FRONTS
TATACHEM - 925 Change: -7.30 (-0.78 %)News: Tata Chemical reported topline growth of 26.6% YoY to Rs 4,407 crore against I-direct estimate of Rs 4,259 crore. Basic chemical segment grew 32% YoY to Rs 3,822 crore vs. I-direct estimate of Rs 3,646.7 crore while specialty products was up by 4% YoY to Rs 589 crore vs .I-direct estimate of |612 crore. Gross margins grew YoY by 64 bps to 80.5% while sequentially it de-grew 377 bps. EBITDA margins for the quarter rose 301 bps to 21.9% vs. I-direct estimate of 20.6%. Absolute EBITDA came in at Rs 965 crore against I-Direct estimates of Rs 878.5 crore. Other Expenses and Power & fuel increases by 40% YoY and 13% YoY respectively. Tata Chemicals reported adjusted PAT at |692 crore against I-Direct estimates of Rs 397 crore (up by 70% YoY). The delta was largely on account of taxes, which came in at Rs-8 crore for the quarter against I-Direct estimates of Rs119 crore
View: With the firm announcing a reduction in pricing of light and dense soda ash by up to 4%, we anticipate a slowdown in soda realization in the coming quarters. Although volume growth is anticipated to continue, strong demand from end-user applications like glass, detergents, lithium, etc. The company's future expansion will also be supported by a rise in the usage of soda bicarbonate. Further we await management commentary on margin stability, going forward
Impact: Positive