Shares of Tata Chemicals witnessed a decline of over 4 percent in trading on June 7 following a penalty imposed on its subsidiary, Tata Chemicals Europe, by the Chester Crown Court in the United Kingdom. The fine amounted to £1.1 million and was linked to a safety incident dating back to 2016, resulting in the injury and subsequent unexpected death of a contractor.
As of 10:56 am, Tata Chemicals’ shares were trading at Rs 1,044.80 apiece on the NSE, with trading volumes significantly higher than usual. The company has faced additional pressure recently due to challenges in the global chemical industry, including increased Chinese inventory, pricing pressures, and weakened global demand, affecting earnings and margins for many chemical players.
Amidst these industry headwinds and a subdued near-term growth outlook, Tata Chemicals’ shares have declined by over 20 percent in the past three months. Furthermore, the company reported weak earnings performance in the January-March quarter of FY24, with a net loss of Rs 841 crore, contrasting sharply with a net profit of Rs 692 crore in the corresponding period last year. Revenue also experienced a significant decline, falling by 21.1 percent to Rs 3,475 crore compared to Rs 4,407 crore in the corresponding period last year.
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