Chemical stock rallies over 11% on strong Q1 results, shares trade near record high
Premium- Tata Chemicals shares have surged more than 16% in 2022 (YTD) so far
Shares of Tata Chemicals rallied more than 11% to ₹1,060 apiece on the BSE in Wednesday's trading session after the company posted strong first-quarter earnings. Tata Chemicals reported about 86% rise in its consolidated net profit to ₹637 crore during the first quarter ending June as compared to ₹342 crore in the corresponding quarter of the previous fiscal.
The Tata Group chemical firm's revenue from operations rose over 34% during Q1 FY23 at ₹3,995 crore from ₹2,978 crore in the same quarter last year.
“India business saw higher soda ash and bi carb realizations aided by strong market demand and market tightness. EBITDA rose due to improved realizations, which offset significant increase in raw material and energy costs during the quarter," highlighted Motilal Oswal in a note.
Last month, Tata Chemicals chairman N Chandrasekaran said that the company is focused on sustainability and committed to reduce its carbon emission by 30% by 2030. "The company is also focused on sustainability and we are leveraging the whole sustainability movement to focus increasingly on green chemistry, embracing circularity, carbon reduction and biodiversity," Chandrasekaran said while addressing Tata Chemicals 83rd Annual General Meeting (AGM) virtually.
The company is focused on to grow the key products and scale up substantially and deleverage all the debt in all the international operations and accelerate the commitment towards sustainability by adopting green chemistry, Chandrasekaran added. "Our newly commissioned carbon capture utilisation facility in the UK is one such initiative in this direction," he said.
In June, Tata Chemicals Europe officially opened the UK's first industrial-scale carbon capture and usage plant, a move the Tata Group company said signals a key milestone in the race to meet the country's net-zero targets. The 20 million pound investment was completed by Northwich-based Tata Chemicals Europe (TCE) in north-west England, one of Europe's leading producers of sodium carbonate, salt and sodium bicarbonate.
MINT PREMIUM See All
Tata Chemicals is a science-led company with a portfolio that covers basic and specialty chemistry products. Tata Chemicals shares have surged about 16% in 2022 (YTD) so far and the chemical stock is currently hovering around its record high level of ₹1,158 apiece it had hit in August last year.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less