Company has reported strong y-o-y growth in the second quarter, both on consolidated basis as well as standalone – revenues going up by close to 40% and EBITDA margins showing substantial improvement. Sequentially, it is a slightly different story. Standalone revenues are down by 3.3%, whereas, consolidated revenues are up 6.1%. EBITDA margins have declined for both; standalone by about 770 basis points and consolidated by about 330 basis points.
The Company has maintained the domestic prices will remain stable for the rest of the year. The US companies in soda ash business claim prices will remain strong for the next one year; something that the management of Tata Chemicals seemed to reiterate.
However, there are certain nuances of the soda ash business that need to be understood. To listen in to quick thoughts on the industry you may watch my video on this link: Tata Chemicals’ second quarter results and comments on soda ash industry – YouTube
Not sure why the PE remains so low.
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