Tata Chemicals, the fertilisers and chemicals flagship of Tata Group, sees revenues from the non-bulk product segment doubling in the current fiscal.
Bulk segment is the business that does not get any subsidy from the government.
The company, which announced third-quarter performance on Friday, saw a major growth in the non-subsidised segment such as customised fertiliser, specialty fertiliser, seeds, pesticides and services business portfolios.
“Our specialty product segment grew 40% and as a result the total non-bulk segment will see the revenues shoot up to Rs600 crore by this fiscal-end,” said R Mukundan, managing director, said.
He said the next fiscal, however, will not see a repeat of the performance owing to a higher base.
“Next year would still be moderate-to-good and we expect the segment to grow at over 30%,” he said.
Tata Chemicals posted an 15% rise in net profit for the third quarter ended December at Rs153.04 crore as against Rs132.71 crore posted in the same period of the previous fiscal. Net sales rose 33% to Rs2,331.89 crore.
On soda ash, which contributes about 45% to revenues, Mukundan said the US and European markets are still stable and the company has been able to tie up almost all its capacity on a long-term basis.
“We have been successful in contracting with customers at an average higher cost of $15 per tonne, but our concern in the Chinese market which has started showing sign of a slowdown,” he said.
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