About -
A part of the Tata Group, Tata Chemicals Limited is a sustainable chemistry solutions Company. The Company operates through two verticals - Basic Chemistry & Specialty Products.
A part of the Tata Group, Tata Chemicals Limited is a sustainable chemistry solutions Company. The Company operates through two verticals - Basic Chemistry & Specialty Products.
The Company’s product portfolio provides key ingredients to many of the world’s leading brands for glass, detergents,
pharma, food & other industries.
TCL is a global major in soda ash & sodium bicarbonate with manufacturing facilities in India, US, UK and Kenya.
pharma, food & other industries.
TCL is a global major in soda ash & sodium bicarbonate with manufacturing facilities in India, US, UK and Kenya.
Location Wise Break-up -
TCL earns (47%) of it's revenue from India, (32.1%) from USA, (15%) from Europe, (3.2%) from Asia Ex India & (2.5%) from Africa.
TCL earns (47%) of it's revenue from India, (32.1%) from USA, (15%) from Europe, (3.2%) from Asia Ex India & (2.5%) from Africa.
Facilities -
Indian Facilities
Indian Facilities
International Facilities
R&D infrastructure -
Tata Chemicals has a robust R&D set-up with three state-of-the-art R&D Centres -
1 at Pune & 2 in Bengaluru India.
Also, strengthening
R&D commitment through increased collaboration to access cutting-edge research & undertake collaborative R&D.
Tata Chemicals has a robust R&D set-up with three state-of-the-art R&D Centres -
1 at Pune & 2 in Bengaluru India.
Also, strengthening
R&D commitment through increased collaboration to access cutting-edge research & undertake collaborative R&D.
Financial Summary -
Q2FY23 (YoY)
Revenue ₹4,239 Cr vs 3,022 Cr ⬆️40%
EBITDA ₹920 Cr vs 501 Cr ⬆️84%
PBT ₹723 Cr vs 320 Cr ⬆️126%
PAT ₹685 Cr vs 248 Cr ⬆️176%
Q2FY23 (YoY)
Revenue ₹4,239 Cr vs 3,022 Cr ⬆️40%
EBITDA ₹920 Cr vs 501 Cr ⬆️84%
PBT ₹723 Cr vs 320 Cr ⬆️126%
PAT ₹685 Cr vs 248 Cr ⬆️176%
Segment Break-up -
Tata Chemicals makes 80% of it's revenue from Basic Chemicals & 19.7% from Speciality Chemicals.
Tata Chemicals makes 80% of it's revenue from Basic Chemicals & 19.7% from Speciality Chemicals.
▪️Basic Chemistry Products:
~ Alkali products: Soda Ash, Sodium Bicarbonate, Caustic Soda, Crushed Refined Soda
~ Halogen products: Chlorine-based products, Bromine-based products
~ Salt products: Industrial Salt, Livestock Salt, Animal Salt, Gypsum.
~ Alkali products: Soda Ash, Sodium Bicarbonate, Caustic Soda, Crushed Refined Soda
~ Halogen products: Chlorine-based products, Bromine-based products
~ Salt products: Industrial Salt, Livestock Salt, Animal Salt, Gypsum.
▪️Specialty Chemistry Products:
~ Agro Sciences: Cover 80% of India's districts with 13 Million farmer contacts through our subsidiary Rallis India Limited which offers crop protection & agri-input solutions.
~ Agro Sciences: Cover 80% of India's districts with 13 Million farmer contacts through our subsidiary Rallis India Limited which offers crop protection & agri-input solutions.
~ Nutritional Sciences: Offer an innovative range of nutritional solutions, prebiotics and healthier alternatives to regular sugar for consumers.
~ Material Sciences: Includes Highly Dispersible Silica & other grades of Precipitated Silica & silica dispersion - have allowed to leverage nano-chemistry & material synthesis expertise to serve needs of high performance materials across several industry segments.
With inherent strengths in chemistry, Tata Chemicals is creating a platform for electro-chemistry solutions.
CAPEX Update -
Out of project cost of ₹2,900 Cr, ₹1,850 Cr has been committed till Sept 2022. Total ₹1,050 Cr is expected to be spent till March 2024.
Further, for FY24-27 ₹2000 Cr Capex has been planned for incremental capacity (beyond ongoing expansion).
Out of project cost of ₹2,900 Cr, ₹1,850 Cr has been committed till Sept 2022. Total ₹1,050 Cr is expected to be spent till March 2024.
Further, for FY24-27 ₹2000 Cr Capex has been planned for incremental capacity (beyond ongoing expansion).
Indian Chemical Industry -
🇮🇳 chemical industry makes up ~3.4% of the global chemicals industry & is expected to grow to $300 billion by 2025.
The domestic Chemicals sector is expected to showcase high revenue & volume growth in FY2022-23,
owing to an improvement in domestic-
🇮🇳 chemical industry makes up ~3.4% of the global chemicals industry & is expected to grow to $300 billion by 2025.
The domestic Chemicals sector is expected to showcase high revenue & volume growth in FY2022-23,
owing to an improvement in domestic-
-demand, increased Government spending & better price realisation of chemicals.
Bulk chemicals (Basic Chemistry) constitute 25% of the market, while Specialty Chem, Petrochem, & Agrochem have 21%, 19% & 15% of the market, respectively.
Bulk chemicals (Basic Chemistry) constitute 25% of the market, while Specialty Chem, Petrochem, & Agrochem have 21%, 19% & 15% of the market, respectively.
Key triggers -
~ Improvement in the soda ash pricing environment bodes well for future growth outlook.
~ Revival in export demand for North America unit to sustain group performance.
~ Higher share of speciality business to command better valuations for the overall group.
~ Improvement in the soda ash pricing environment bodes well for future growth outlook.
~ Revival in export demand for North America unit to sustain group performance.
~ Higher share of speciality business to command better valuations for the overall group.
Risks -
~ High prices of energy sources like Oil, Natural Gas, Coal impacting variable costs.
~ Policy changes which could impact the Company’s operations at large.
~ Failure to address climate change related risks with an aim to reduce carbon emissions.
~ High prices of energy sources like Oil, Natural Gas, Coal impacting variable costs.
~ Policy changes which could impact the Company’s operations at large.
~ Failure to address climate change related risks with an aim to reduce carbon emissions.
Valuations -
P/E (Stock): 14.5
P/E (Industry): 18.5
P/S : 1.93
P/B : 1.49
EV/EBITDA : 9.6
P/E (Stock): 14.5
P/E (Industry): 18.5
P/S : 1.93
P/B : 1.49
EV/EBITDA : 9.6
Conclusion -
Green Chemistry & Green applications will continue to be at the heart of growth. Soda Ash is expected to remain on growth path in 🇮🇳 & around the world with increase demand for solar glass & lithium carbonate.
Green Chemistry & Green applications will continue to be at the heart of growth. Soda Ash is expected to remain on growth path in 🇮🇳 & around the world with increase demand for solar glass & lithium carbonate.
Specialty silica is an essential ingredient for the green labelling of tyres & Fermentation technology-based Prebiotics are replacing synthetic ingredients in food, feed & pharma sectors.
Tata Chemicals is well positioned to continue its growth in the comming years.
Tata Chemicals is well positioned to continue its growth in the comming years.
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