InvestorQ : Why did Tata Chemicals report such a sharp fall in net profits for the Jun-20 quarter?
Khushi Patel made post

Why did Tata Chemicals report such a sharp fall in net profits for the Jun-20 quarter?

Answer
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Anjana Aiyar answered.
1 month ago


Tata Chemicals reported a 68% fall in net profits to Rs.74 crore for the Jun-20 quarter. It had reported a profit of Rs.231 crore for the Jun-19 quarter. Tata Chemicals reported total revenues 9% lower at Rs.2348 crore. Tata Chemicals has explained that due to COVID they had restricted production and supply only to essential commodities.

In the June quarter, due to the pandemic, Tata Chemicals had focused more on cash position and optimal CAPEX. Accordingly, it had calibrated fixed costs. The company hopes to move up the value chain by shifting soda ash into value-added products. Tata Chemicals also plans to focus more on nutrition science and the agri-science business.