Rising raw matl prices could impact Tata Chem''s margins: Tata
PTI | 10:08 PM,Aug 09,2010Mumbai, Aug 9 (PTI) Rising raw material prices could impact Tata Chemicals' margins this fiscal, chairman of the company Ratan Tata said today."Rising prices of raw materials would result in rising input costs having an impact on the company's operating margin in 2010-11," he told shareholders at the company's AGM today.Material costs of the company constituted 52 per cent of the total expenditure last fiscal (2009-10).In 2009-10, gross sales realisation in soda ash which contributes 45 per cent to the company's revenue, dropped 12 per cent to Rs 13,690 per metric tonne as compared to Rs 15,548 per metric tonne in the year-ago period due to low-cost Chinese imports."Imports from China reduced from 20 per cent to 14 per cent during the year. However, despite the severe challenges on the global economic front, demand for soda ash grew at a robust 8 per cent in India," Tata said, adding that all soda ash units of the company, except Magadi (in Kenya), are expected to report strong operating performances. On its water purifier--Tata Swatch--launched in December 2009, Tata said the company is targeting a sale of 1-million water purifiers by end-December. The company has till date sold 1-lakh units, he added.
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