Page 64 - Tata_Chemicals_yearly-reports-2019-20

during FY 2019-20, sales volumes were essentially flat as home market of uK increased, the company also witnessed
compared to the previous year (up by 0.60%). Inspite of a strong demand from the exports markets, especially from
increased production levels, a temporary over-supply of soda europe.
ash worldwide, compounded by the Covid-19 pandemic,
resulted in the unusual position of not being able to sell the combined heat and power facility at Winnington
the entire product produced during this period. due to performed well throughout the year, helped by the
the slightly higher sales volume, tCna posted revenue of reinstatement of capacity market payments which had been
uS$ 480.00 million (` 3,402.14 crore) for the year ended unexpectedly withdrawn part way through FY 2018-19.
March 31, 2020 as compared to uS$ 481.60 million (` 3,366.19 In the Salt business, sales volumes were steady through the
crore) in the previous year, inspite of slightly lower american year, but with a better mix towards higher margin products.
natural Soda ash Corporation (anSaC) pricing and a market
mix reflecting an increased supply to lower priced export eBItda for FY 2019-20 for the uK operations was £21.2 million
markets relative to the uS. (` 191.08 crore) as against £14.5 million (` 133.02 crore) for
FY 2018-19. the profit after tax for FY 2019-20 was £1.1 million
For FY 2019-20, eBItda at tCna was uS$ 104.80 million (` 9.91 crore) as against loss after tax of £4.2 million (` 38.53
(` 742.80 crore) against uS$ 97.90 million (` 684.28 crore) crore) for FY 2018-19.
in the previous year due to improved production, reduced
selling, general & administration (Sg&a) costs resulting 1.2.3 Tata Chemicals Magadi Limited
from realising nearly a full year’s benefit of relocating the
corporate offices from new Jersey to utah and a new uS during the year under review, the production volumes at
gaap accounting standard that changed the accounting tata Chemicals Magadi limited (‘tCMl’) were lower by 9%
for operating leases, treating those costs as depreciation as and sales volumes were lower by 12% against the previous
against operating expenses in prior years. these favourable year.
impacts more than offset increased spending on plant costs, tCMl achieved total sales of uS$ 67.89 million (` 481.19
particularly in maintenance and labour. crore) for FY 2019-20 as against the sales of uS$ 73.79 million
(` 515.76 crore) in the previous year, a decrease of 8%.
profit before tax and profit after tax and non-controlling
interest for FY 2019-20 were at uS$ 64.15 million (` 454.68 For FY 2019-20, tCMl registered an eBIdta of uS$ 8.34 million
crore) and uS$ 35.96 million (` 251.35 crore) respectively (` 59.11 crore) as against the eBIdta of uS$ 9.87 million
against uS$ 82.30 million (` 575.24 crore) and uS$ 54.60 (` 68.99 crore) in the previous year, lower by 16%. decline
million (` 381.63 crore) respectively in the previous year, in eBIdta was on account of lower sales volume and higher
which included a one-time unusual gain of uS$ 16.43 million rail haulage charges. Fixed cost was lower than previous year.
(` 114.86 crore) from writing back, upon dismissal by a court,
a liability acquired with the purchase of the company in tCMl made a net loss of uS$ 0.13 million (` 0.92 crore) as
2008. against the net profit of uS$ 2.66 million (` 18.59 crore) in
the previous year due to higher finance costs (rising
1.2.2 TCE Group Limited and British Salt Limited lIBor), foreign exchange loss due to weakening of Kenya
tCe group limited’s business consists of Soda ash, Sodium Shilling to uS dollar, fuel hedge swaps loss and other
Bicarbonate and energy units and British Salt limited costs.
manufactures and sells food grade and industrial salt. the county government had issued a demand during
together, they are referred as uK operations of the Company.
FY 2018-19 for an arbitrary increase in land rates which
was subsequently struck down by the Hon’ble High Court.
the turnover of the uK operations for FY 2019-20 was £148.5
million (` 1,338.43 crore) against £157.9 million (` 1,448.79 the Hon’ble High Court had suggested for a mediation
crore) in the previous year. the reduction was mainly due which tCMl had duly submitted to. nevertheless, tCMl
to the planned reduction in sales of low margin, imported has filed an appeal for reconsideration of the other issues
soda ash and a reduction in the price of electricity sold to the raised in the petition before the Hon’ble High Court
national grid. while the appeal is pending. tCMl is still open to work
with the appropriate national authorities and the county
Sodium bicardonate sales were strong throughout the year, government to arrive at a fair, transparent and appropriate
especially from the Winnington plant. While demand in the resolution through legal means.

62 I Integrated annual report 2019-20