Page 61 - Tata_Chemicals_yearly-reports-2017-18

Scheme became effective from 12 January, 2018 on filing the Order year (Continuing Operations and Discontinued Operations) increased
of the NCLT with the Ministry of Corporate Affairs. Accordingly, the from ` 692.71 crore to `1,766.96 crore, an increase of 155% over the
Divestment Business along with the assets, liabilities, contracts, deeds, previous year.
etc. stands transferred and vested with Yara India in accordance with
Tata Chemicals Limited’s (‘TCL’ or ‘the Company’) operation
the Scheme with effect from 12 January, 2018 for which the Company
(‘Continuing Operations’) is organised under three segments: (1)
received a consideration of ` 2,682 crore (subject to post completion
Inorganic Chemicals comprising Soda Ash, Salt, Sodium Bicarbonate,
working capital adjustments) from Yara India on the said date.
Marine Chemicals, Caustic Soda and Cement; (2) Other Agri-inputs
The Board of Directors of the Company, at its meeting held on comprising Rallis India Limited’s operations; and (3) Others comprising
6 November, 2017, approved the sale of its Phosphatic Fertilisers Pulses, Spices, Water Purifier and Nutritional Solutions. Performance
Business and the Trading Business comprising bulk and non-bulk review of these businesses is discussed below:
fertilisers and all related assets situated at Haldia in West Bengal to
1. INORGANIC CHEMICALS SEGMENT
IRC Agrochemicals Private Limited (‘IRC’), wholly owned subsidiary of
Indorama Holdings BV, Netherlands. The proposed sale is on a going 1.1 INDIA OPERATIONS
concern basis and by way of a slump sale, for a lump sum consideration
During the year under review, the Inorganic Chemicals Integrated Report
of ` 375 crore (subject to certain usual adjustments after closing) in
Business achieved revenue on standalone basis of ` 3,376.83
accordance with the terms of the Business Transfer Agreement (‘BTA’)
crore against ` 3,459.80 crore in the previous year, a marginal
entered into between the Company, IRC and Indorama Holdings B.V.
decrease of 2.4%.
In terms of Section 180(1)(a) of the Companies Act, 2013, approval of
FY 2017-18 was another year of strong financial and
the Members of the Company was obtained on 10 January, 2018 for
operational performance for the Indian Chemical Operations.
the proposed transaction under the provisions of Section 110 of the
This performance was achieved in a challenging business
Companies Act, 2013 read with applicable Rules through postal ballot.
environment marked by increase in input energy costs and
The effect of the transfer of Phosphatic Fertiliser Business and Trading competitive pressures emanating from domestic and global
Business will be reflected in the financial results of the period in which capacity additions in the key product. This performance was
the deal is consummated post receipt of all the requisite regulatory made possible largely through operational excellence with
and statutory approvals. relentless focus on optimising the costs and serving customers
efficiently.
Hence, the Fertiliser Business (comprising Urea, Phosphatic Fertilisers
and Trading Business) is classified as Discontinued Operations in the The business continued to maximise throughput of all key Statutory Reports
financial statements for the year ended 31 March, 2018. products. Significant rise in the input energy costs led to some
pressure on profitability which was more than adequately
PERFORMANCE REVIEW
compensated by a strict control on the operational costs.
Consolidated:
Soda Ash
The consolidated revenue from Continuing Operations was
Domestic demand for soda ash grew at 12% for the year,
` 10,345.36 crore as against the previous year’s figure of ` 10,680.98
driven by a broad based growth in key application industries
crore, down by 3%. Earnings before interest, tax, depreciation and
including glass and detergents. The manufacturing volumes at
amortisation (‘EBITDA’) from Continuing Operations increased from
Mithapur remained flat at 8.17 lakh tonnes p.a. while the sales
` 2,094.29 crore to ` 2,190.69 crore, registering an increase of 5% over
volume at 6.93 lakh tonnes p.a. was marginally lower than the
the previous year. Profit before tax from Continuing Operations was
corresponding figure of 7.08 lakh tonnes p.a. in the previous
` 1,620.13 crore, an increase of 10% over the previous year’s figure of
year, mainly on account of higher captive consumption of
` 1,466.58 crore. Profit after tax from Continuing Operations increased
soda ash to produce sodium bicarbonate. In order to meet the
from ` 1,120.63 crore to ` 1,560.00 crore, an increase of 39% over
higher customer requirements during the year, the business
the previous year. Profit for the year (Continuing Operations and
also supplemented its Mithapur soda ash volumes with
Discontinued Operations) increased from ` 1,234.10 crore to ` 2,702.49 Financial Statements
imports from TCL group companies and others. The Company
crore, an increase of 119% over the previous year. Profit for the year
launched “Detmate”, a branded speckle grade soda ash offering
attributable to equity shareholders of the Company increased from
for the detergent segment. The strong growth in demand
` 993.11 crore to ` 2,433.08 crore, an increase of 145% over the
and the firming up of the international prices during the year
previous year.
contributed to better price realisations.
Standalone:
Sodium Bicarbonate
Revenue from Continuing Operations was ` 3,524.17 crore as against
In line with its long-term growth rate, the domestic sodium
the previous year’s figure of ` 3,837.04 crore, down by 8%. EBITDA
bicarbonate (‘bicarb’) demand registered a growth of
from Continuing Operations increased from ` 857.67 crore to
13% p.a. in FY 2017-18. The Company continues to focus on
` 922.16 crore, an increase of 8% over the previous year. Profit before
both volume and value growth of bicarb. Mithapur registered
tax from Continuing Operations increased from ` 804.01 crore to
the highest ever bicarb production of 1.06 lakh tonnes
` 903.59 crore, an increase of 12% over the previous year. Profit after
p.a. (against 1.01 lakh tonnes p.a. in the previous year) and
tax from Continuing Operations increased from ` 579.24 crore to
highest sales volume of 1.06 lakh tonnes p.a. (against 1.01 lakh
` 624.47 crore, an increase of 8% over the previous year. Profit for the
Board's Report 59