Page 125 - Tata Chemical Annual Report_2022-2023

Integrated Annual Report 2022-23 01-83 84-192 193-365
Integrated Report Statutory Reports Financial Statements
Board's Report

the increased requirement. The Company recorded highest substantially higher to reflect higher raw material and together with ongoing application development have rates, high inflation and supply-chain disruptions, the
ever production of salt at 13.2 lakh MT during FY 2022-23. energy cost inputs. enabled the Company to serve customers across the globe. Company kept the focus on accelerated pre-payment
In addition, a project is under implementation to increase of loans at its overseas subsidiaries while at the same
the salt manufacturing capacity to meet the projected The UK Operations maintained core UK market share In addition to continuing growth from the USA and South time proactively responded to the global situation by
demand increase. On the manufacturing side, solar salt with slightly reduced exports into Europe in line with the East Asia markets, there has been encouraging potential negotiating competitive margins during refinances,
production was affected due to brine dilution owing to above. The combined heat and power (CHP) facility at also opening up from the European Union. The facility arranging appropriate trade finance facilities to realign
extended rains and flooding. Winnington performed well through the year generating has been qualified by some global customers placing the with the working capital requirements and broadening
good electricity margins despite volatile and high natural Company on the path of achieving full capacity utilisation in the investment avenues to enhance blended yield on
Other Products gas prices throughout the period. the coming year. There were specific intervention projects deployment of surplus cash balances.
Sale of cement stood at 4.8 lakh MT, an improvement undertaken to improve efficiencies and cost of operations.
of 13.7% over previous year. Bromine production was In the Salt business, sales volumes were steady amid rising The Company’s overseas subsidiary, Tata Chemicals Magadi
impacted due to bittern dilution. energy costs and price was increased in the market to Subsidiary Limited, Kenya, pre-paid its entire term loan outstanding
reflect the same. Rallis India Limited (‘Rallis’) of US$ 36 million during the year. Term loans at Tata
Subsidiaries (as per TCL consolidated books) Chemicals International Pte Limited ('TCIPL'), Singapore and
Tata Chemicals North America Inc., USA (‘TCNA’) (as per EBITDA for FY 2022-23 for the UK Operations was £ 63.6 Rallis India Limited, the Company's listed subsidiary, has Homefield Pvt UK Limited amounting to US$ 200 million
USGAAP) million (` 615 crore) against £ 11.6 million (` 118 crore) and been serving Indian farmers and Global markets through and US$ 28.5 million respectively, were refinanced and
the profit after tax was £ 45.0 million (` 435 crore) against its products in Crop Protection, Crop Nutrition and consolidated at TCIPL, Singapore. £ 80 million term loan
During FY 2022-23, overall revenue for TCNA increased the loss of £ 8.4 million (` 85 crore) in the previous year. Hybrid Seeds. Rallis achieved revenue from operations of at UK was refinanced with a new loan of £ 70 million and
by 32% to US$ 655.7 million (` 5,271 crore) from ` 2,967 crore in FY 2022-23 compared to ` 2,602 crore in balance was repaid. Tata Chemicals North America has
US$ 495.0 million (` 3,688 crore) due to increased realisation Tata Chemicals Magadi Limited, Kenya (‘TCML’) FY 2021-22, an increase of 14%. The profit after tax stood repaid US$ 85 million, ahead of the schedule, during the
offsetting a small volume reduction of 2%. (as per IFRS) at ` 92 crore, down by 44% against a profit after tax of year under review.
` 164 crore in FY 2021-22.
EBITDA registered an increase of 51% to US$ 160.3 million During FY 2022-23, sales volumes were lower by 10% During FY 2022-23, Rallis, a subsidiary and IMACID, a joint
(` 1,288 crore) against US$ 106.0 million (` 790 crore) in over FY 2021-22. TCML achieved a revenue of US$ 117.6 During FY 2022-23, the Domestic Crop care business venture, paid dividends of ` 29 crore (FY 2021-22: ` 29 crore)
FY 2021-22. This increase in business performance led to million (` 945 crore) for FY 2022-23 as against revenue of of Rallis achieved a revenue of ` 1,643 crore as against and ` 92 crore (FY 2021-22: ` 28 crore) respectively to the
TCNA registering a profit after tax and non-controlling US$ 77.4 million (` 577 crore) in the previous year, an ` 1,468 crore in FY 2021-22, an increase of 11.9%. This is in Company. Tata Chemicals South Africa (Pty) Limited paid
interest of US$ 90.7 million (` 729 crore) during FY 2022-23 increase of 52%. For FY 2022-23, TCML registered an EBITDA the context of the industry facing headwinds from erratic a dividend of South African Rand 5.0 million (` 2 crore)
compared to a profit of US$ 49.9 million (` 372 crore) in of US$ 58.3 million (` 468 crore) against the EBITDA of rainfall and lower pest infestation across the majority of [FY 2021-22: South African Rand 30.0 million (` 15 crore)].
FY 2021-22. US$ 19.2 million (` 143 crore) in the previous year, higher the crops. Large part of the growth in the Agrochemicals
by 204%. The increase in EBITDA was due to better industry in general and Rallis in particular has been driven TC Africa Holdings Limited paid a dividend of £ 0.3 million
TCE Group Limited, UK (‘TCE group’) (as per IFRS) realisations and cost control. TCML recorded a net profit of by price growth. (` 3 crore) [FY 2021-22: £ 1.5 million (` 15 crore)].
US$ 55.9 million (` 450 crore) in FY 2022-23 against a net
TCE Group Limited’s business consists of soda ash, sodium profit of US$ 12.7 million (` 94 crore) in FY 2021-22. The International business of Rallis grew by 24.5% to For the year under review, the Company’s credit ratings
bicarbonate, and energy units and British Salt Limited ` 979 crore in FY 2022-23 from ` 787 crore in FY 2021-22. were reaffirmed. Fitch Ratings upgraded the outlook to
which manufactures and sells food and industrial grade 5.2 Specialty Products Growth was competitive and well balanced between price ‘Positive’.
white salt. Together they are referred to as ‘UK Operations’ Standalone and volume.
of the Company in this Report. Silica The Company as on March 31, 2023 had the following
Revenue of the Seeds division of Rallis decreased by 1.3% credit ratings:
Tyre demand during FY 2022-23 had normalised.
The turnover from the UK Operations for FY 2022-23 was over the previous year to ` 345 crore. The business continued - Long Term Corporate Family Rating – Foreign Currency
£ 271.5 million (` 2,629 crore) against £ 191.5 million Tyre labelling norms will continue to drive demand to witness challenges for the second year in a row. Reduced of Ba1/Stable from Moody’s Investors Service
(` 1,949 crore) in the previous year, registering a growth of highly dispersible silica (HDS). Silica margins in demand for Hybrid Paddy and the presence of illegal cotton
of 42%. FY 2022-23 were impacted by a steep increase in raw seeds impacted the industry. Profitability was impacted - Long Term Foreign Currency Issuer Default Rating
material and energy costs. The Company's primary due to inventory provision & impairments of intangibles (IDR) of BB+ with Positive outlook from Fitch Ratings
In a year dominated by high and volatile natural gas prices, focus will be on scaling use of HDS in tyre to protect of ` 83 crore. Their portfolio has also faced challenges with - Long Term bank facilities (fund-based limits) of
soda ash sales volumes were steady throughout the year overall realisations. some of the product launches not scaling up as per the ` 1,300 crore and short-term bank facilities (non-fund
with slight softening of demand in the chemicals and expectations. High fixed costs have also limited operating based limits) of ` 2,000 crore are rated at CARE AA+
construction sectors witnessed later in the year. Sales of Prebiotics & Formulations leverage impacting the overall profitability of the business. (Outlook: Stable) and CARE A1+ respectively, by CARE
high-grade sodium bicarbonate remained consistent The Company stabilised its operations at its state-of- Ratings and
compared to FY 2021-22, with some softness latterly the-art greenfield facility in Mambattu, Andhra Pradesh. 6. Finance and Credit Ratings
in relation to lower technical grades in the Central & Food safety certifications (FSSAI, FSSC 22000, FAMI QS, Amid the geopolitical conflict and a global macro-economic - Commercial Paper of ` 100 crore is rated at CRISIL A1+
Western Europe market. Prices for both products were Halal, Kosher), strong scientific backing, regulatory support, scenario of pressing energy inputs costs, rising interest by CRISIL Ratings

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