Shares of Tata Chemicals hit a record high of Rs 357, up 9 percent on BSE in intraday trade on Thursday in a market otherwise tied to the range. The title of the Tata group’s basic chemicals company broke its previous high of Rs 345.80, touched on August 25, 2020. By comparison, the S&P BSE Sensex was down 0.05% to 44,159 points.
The meter has seen tremendous activity with trading volumes more than quadrupled today. A combined 7.16 million shares had changed hands on the counter on the NSE and BSE until 11:33 a.m.
Currently, Tata Chemicals is the world’s third largest producer of sodium carbonate with manufacturing facilities in Asia, Europe, Africa and North America. The company occupies a strong position in the field of crop protection through its subsidiary Rallis India.
While announcing the results for the July-September quarter (T2FY21) on October 29, Tata Chemical management said the company is witnessing a recovery in the chemical industry and in customer demand. Plant operations and capacity utilization have gained momentum and are returning to pre-Covid levels.
In the second quarter of fiscal 21, the company’s consolidated revenue fell 6% year-over-year (year-over-year), driven by weak demand and pricing pressures in some markets , resulting in a 15% drop in the volume of sodium carbonate worldwide. The Indian market performed relatively better despite a one-year decline. Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) fell 31% year-on-year and the margin contracted 543 basis points year-on-year to 14.8%.
Analysts at Emkay Global Financial Services said the recovery in demand looks encouraging in the domestic market, driven by the detergent and automotive industries, while the pace of demand in other geographies has remained. slower. The salt trade continues to hold up. The company’s recovery in the export market is important for a significant recovery in margins, the brokerage firm said in the earnings update.
Last year, Tata Chemicals split its consumer products business consisting of the sourcing, packaging, marketing, distribution and sale of vacuum evaporated edible common salt for human consumption, spices, d ‘protein foods and certain other foods and other products in other Tata Consumer Products group company. Tata Chemicals shareholders awarded 114 Tata Consumer Products shares for every 100 shares held in the company.