Tata Chemicals - Result Update - Emkay

Reco: ACCUMULATE
CMP: Rs 363
Target Price: Rs 400

Cautious outlook; maintain Accumulate

- Q3FY12 consol results were in line with revenues of Rs 38 bn, +32% yoy and EBITDA of Rs 5.6bn, 26% yoy (with margins of 14.6%). TCL reported APAT of Rs 2.3 bn, +70% yoy

- US subsidiary reported strong results driven by higher topline. However, European business disappointed due to lower margins. Standalone performance remained strong

- Though demand remained strong across most products, however rising input costs exerted cost pressures

- Management maintained cautious outlook. Increased soda ash supply in China will put pressure on prices; decline in phos acid prices will impact IMACID. Maintain Accumulate.

Source : Equity Bulls

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