Tata Chemicals Limited · NSE:TATACHEM

Tata Chemicals — H1 FY2005 Earnings Presentation

13 slides from Tata Chemicals's earnings presentation, Oct 19, 2004

  1. Slide 1: H1 FY2005 Financial Results

    H1 FY2005 Financial Results October 19, 2004 1

  2. Slide 2: Overview

    Overview • Healthy improvement in PBT and PAT both on a quarterly and half yearly basis • Performance achieved in a challenging environment • Continuing firm prices of coke and ammonia – key inputs in the manufacture of soda ash and DAP respectively • Tight raw material supplies • Transport and cont

  3. Slide 3: PBT

    PBT Q2 FY 2005 H1 FY 2005 200 200 193 150 127 121 160 120 120 Rs. Crore 90 Rs. Crore 80 60 40 30 0 0 H1 FY2004 H1 FY2005 Q2 FY2004 Q2 FY2005 3% 5% Alterations in input mix, enhanced efficiencies improve PBT 3

  4. Slide 4: PAT

    PAT Q2 FY 2005 H1 FY 2005 100 5 150 8 87 133 132 83 4 .0 5 4 120 6 .1 7 75 6 3 .8 5 6 .1 2 3 90 Rs crore Rs crore % 4 % 50 2 60 25 2 1 30 0 0 0 0 Q2 FY04 Q2 FY05 H1 FY04 H1 FY05 PAT EPS PAT EPS 5% 1% 4

  5. Slide 5: Segmental highlights

    ale TATA eSegmental highlights TATA CHEMICALS LIMITED

  6. Slide 6: Inorganic chemicals – Soda Ash

    Inorganic chemicals – Soda Ash ƒ Domestic market expands 3.7% Sector outlook ƒ Industry impacted by spiralling coke prices ƒ Increase in import volumes ƒ Market leadership sustained ƒ Alterations in input mix enhance operations, combat high input costs Tata Chemicals performance ƒ Sustains high capa

  7. Slide 7: Inorganic chemicals – Food additives

    Inorganic chemicals – Food additives Sector outlook ƒ Increased demand for edible salt across the country ƒ Tata Salt maintains market leadership, Marketshare: Tata Chemicals 40.5% in July – August 2004 performance ƒ Strong increase in dealer penetration levels ƒ Tata Salt recognised as a ‘Superbran

  8. Slide 8: Fertiliser - Urea

    Fertiliser - Urea ƒ Strong monsoon increasing demand and driving fertiliser sales Sector outlook ƒ Group Pricing Policy expected to reward efficient manufacturers ƒ Healthy 10% improvement in sales volumes compared to corresponding six months last year Tata Chemicals performance ƒ Babrala plant cont

  9. Slide 9: Fertiliser - DAP

    Fertiliser - DAP ƒ High ammonia prices impacts operations across Sector outlook industry ƒ Negotiated phosphoric acid prices ratified by the Government ƒ Limited availability of raw materials results in decline in Tata Chemicals performance volumes ƒ H1 FY2005 sales volumes: 209,000 MT 9

  10. Slide 10: Revenue perspective

    Revenue perspective H1 FY 2005 Q2 FY 2005 1000 1,500 1224 1249 810 800 1,200 729 Rs. Crore Rs. Crore 600 900 400 600 200 300 Q2 FY2004 Q2 FY2005 H1 FY2004 H1 FY2005 2% 10% Q2 revenues impacted by tight raw material supply and transport strike 10

  11. Slide 11: Financial Management

    Financial Management 1000 0.48 0.45 800 0.43 600 593 0.38 400 476 0.31 0.33 200 334 193 0 0.28 Sept 2003 Sept 2004 Long term debt Short term debt Debt-equity ratio Almost debt free status, 70% of debt is short term suppliers credit 11

  12. Slide 12: Financial Management (interest costs)

    …Financial Management 12 25 20 9 7.5 14.8 15 Rs crore % 6 10 4.6 5.9 3 5 0 0 Q2 FY04 Q2 FY05 Interest Cost of borrowing Interest costs 60% lower than amount incurred in Q2 FY 2004 12

  13. Slide 13: Outlook

    Outlook • Chemicals • Sales shortfall expected to be made up in H2 FY2005 • Continuing firm input prices may temper margins • Fertiliser • Urea and DAP demand strong for forthcoming Rabi season Continued efficiency enhancement and aggressive marketing and distribution thrust 13

Tata Chemicals — H1 FY2005 Earnings Presentation on 6ix