Page 153 - Tata Chemical Annual Report_2022-2023

Integrated Annual Report 2022-23 01-83 84-192 193-365
Integrated Report Statutory Reports Financial Statements
Management Discussion
& Analysis

In FY 2022-23, salt volumes decreased by 10% as Soda ash is the key product in the TCML high price opening inventory issues and In India, recovery in soda ash demand across application
compared to FY 2021-22. Strong revenue growth portfolio, mainly servicing the container glass pressure on prices due to drop in raw material sectors, an anticipated reduction in imports, and increasing
in FY 2022-23 was due to the price increase and silicate sectors in the East African domestic prices in the latter part of the year, resulting in energy and freight costs will necessitate increased focus
during the year to cover increased energy market, and the export markets in SEA and the Profit After Tax of ` 92 crore compared to ` 164 on operating rates and the ongoing programmes for
costs. Gas prices remained volatile throughout Indian subcontinent. crore achieved during FY 2021-22 driving cost reductions and efficiencies, which are
FY 2022-23, with decline towards Q4. Capping likely to yield benefits in margins. Timely completion of
of energy prices in Europe may stabilise energy II. Financials (continuing operations) ` in crore II. Financials ` in crore phase 1 expansion under execution, and projected phase 2
markets. However, there remain a significant FY FY expansion at Mithapur will further drive growth across the
number of uncertainties as 2023 unfolds quarter TCML (Kenya) 2022-23 2021-22 FY FY Company’s product portfolio in its core business.
by quarter. Rallis 2022-23 2021-22
Revenue A key focus area will be continuing push on expanding
The UK sodium bicarbonate business had a from Operations 945 577 Revenue 2,967 2,602 value-added sodium bicarbonate sales into the growing
good year, including the full commissioning of EBITDA 468 143 from Operations food, feed and pharma sectors, in line with the Company’s
the new CCU plant which is now providing the EBITDA 219 276 transformation strategy, and offering customers in these
European Industrial Gases Association (EIGA) PBT 439 94 PBT 128 222 sectors a portfolio of products, including its NQ range
standard CO required for high grade sodium of prebiotics. This would also further ramp up capacity
2 PAT 450 94
bicarbonate production, and has also reduced PAT 92 164 utilisation of the new prebiotics plant. Similarly, the
emissions by over 10% in the process. The revenue increased by 64% compared to the Note: The figures are as per TCL’s consolidated books ongoing project to increase salt capacity in order to service
II. Financials (continuing operations) ` in crore previous year, on account of better realisations The revenue grew 14% compared to the long-term growth in demand from the key customer, TCPL,
will continue.
due to favourable market demand. Hence, PAT
FY FY improved by ` 356 crore. A tight control on costs, previous year on account of growth in Crop
TCE Group (UK) Sustainability driven trends in the rubber and tyre
2022-23 2021-22 especially lowering of fixed cost, coupled with Care. Crop Nutrition business registered 21.8% industry are calling for incorporation of specialty grades
Revenue 2,629 1,949 higher realisations resulted in better EBITDA. growth over the previous year. Growth in Crop of silica, which augurs well for the growth of the specialty
from Operations Care business was positive at 16.3%, though silica business in terms of customer acquisition and
b. Specialty Products margins were under pressure due to steep cost
EBITDA 615 118 capacity growth.
Rallis India Limited (‘Rallis’) volatility. Seeds business had a challenging
PBT 382 (85) I. Operations: year, resulting in degrowth of 1.3%, impacted The outlook for TCNA, US, remains positive, with soda ash
PAT 435 (85) by both internal and external factors. Optimising operating rates at maximum levels driven by a continued
Rallis Revenue ` in crore the fixed costs and net working capital are key ongoing recovery in export markets. At TCNA, continuous
The revenue grew 35% compared to the 2,622 priorities going forward. improvement, cost reduction and sustainability in
previous year, led by higher soda ash, salt and 2,028 2,253 operations will remain areas of focus to drive margin
sodium bicarbonate revenue. 5. Business Outlook improvement. Generating free cash flow and prepaying
debt remains a key area of focus.
Tata Chemicals Magadi Limited, Kenya (‘TCML’) The Company continues to focus on growth of its
core businesses and develop new products that serve In TCE, UK, product demand across the range has built
I. Operations
customers' needs along the vectors of sustainability and strongly throughout the year from a slightly hesitant start,
Sales trend of Basic Chemistry Products is green chemistry. The demand growth is in sustainability with price rises occurring on the back of the significantly
as follows: 401 driven applications like solar glass, lithium carbonate increasing input price pressures. The sodium bicarbonate
349 345
TCML Sales Volume in lakh MT and shift from plastic to glass containers, and also in plant is now self-sufficient in carbon dioxide, having
sectors such as food, feed and pharma. These, in turn, successfully commissioned the CCU plant as part of the
3.2 Company’s overall sustainability push towards its carbon
2.9 FY 2020-21 FY 2021-22 FY 2022-23 will continue to drive the Company’s current and future
Crop Care Seeds investments as an ingredients supplier of choice to reduction targets. Future sodium bicarbonate and salt
2.3 growth is being driven by focus and investment in high
Note: Excluding inter-company transactions these sectors. grade pharmaceutical applications, including investment
Rallis registered ` 2,967 crore during FY 2022- Global demand growth for FY 2022-23 saw strong in a pharma salt plant at the Middlewich site, due onstream
23 compared with ` 2,602 crore recorded in demand across all sectors, continuing the post COVID-19 in 2024.
the previous year in a challenging business
environment. Rallis was able to take calibrated economic recovery which began mid 2021. There will For TCML, Kenya, sustained demand in export markets with
price increases to the domestic customers, in be a new capacity of 1 million tonne coming online in a focus on developing the domestic East African market to
FY 2020-21 FY 2021-22 FY 2022-23 order to absorb the input costs, by leveraging the US in 2023 and 1.5 to 2 million tonnes in China by maximise overall price realisation through strategic market
its strong brands. International markets had year end. This may put pressure on prices for FY 2023-24 mix, would be an area of focus. In addition, ensuring plant
Soda Ash supply period. reliability as well as optimising costs would continue to be

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