Tata Chemicals shares rose 12.17% to Rs 1073.65 on the BSE in intraday trade on Wednesday, August 10, after the company announced an 87% year-on-year (YoY) increase in its consolidated profit after tax (PAT) to Rs 641 crore in the June quarter (Q1FY23). In the preceding fiscal quarter, the Tata Group company reported a PAT of Rs 342 crore.

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In Q1FY23, income from operations increased 34% year on year to Rs 3,995 crore, up from Rs 2,978 crore in Q1FY22. Earnings before interest, taxes, depreciation and amortisation (EBITDA) margins increased 520 basis points (bps) to 25.4% (highest in history) due to decreased power and fuel and freight costs.

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Tata Chemicals stated that its operating performance indicates improved realisations, effective cost management, and optimal capacity utilisation amid difficult market circumstances, as well as rising input and energy prices. Soda ash has been a major driver of growth in basic chemicals across all regions.

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At 12:30 p.m., the stock was trading 10.41% higher at Rs 1056.80 against a 0.13% fall in the S&P BSE Sensex. On October 18, 2021, it reached a 52-week high of Rs 1,158. Trading volumes at the counter increased more than threefold, with 4.2 million equity shares changing hands on the NSE and BSE.

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“The performance for the quarter was largely led by improved soda ash realisations across all geographies, which led to strong top-line growth for the quarter. However the volume growth remained muted for the quarter”, said ICICI Securities.