Tata Chemicals’ share price saw a 5% drop off in the early trading hours on Tuesday, a day after the company declared its third quarter results. 

On a consolidated basis, for Q3FY2024, the operating income stood at Rs 3,730 crore, compared to Rs 4,148 crore in the corresponding quarter of the last financial year. Further, Profit after Tax (PAT) stood at Rs 194 crore for the quarter, compared to Rs 432 crore in the third quarter of the financial year 2022-2023.

The company’s net profit decreased by 55% in the third quarter of the financial year 2023-2024 compared to the same quarter of 2022-2023. 

According to the Managing Director & CEO of Tata Chemicals, Mr R. Mukundan – the drop in the profits is due to fluctuations in international demand and supply. Due to uncertainties in the US Market, they had to lower the prices.

“In the short term, current demand-supply situation is likely to persist but should improve and stabilise over the long term driven by growth sectors based on sustainability trends,” he said. 

Tata Chemicals Limited is a part of the giant Rs 30 Lakh Crore Tata Group of Companies and a leading supplier to Glass, Detergent, Industrial and Chemical Sectors. It has offices in Pune and Bangalore, where it has established world-class Research and Development Centres.

Tata Chemicals recovered from the early losses and closed at Rs 990, a 1.10% hike from its previous close on the National Stock Exchange (NSE).