THIRUVANANTHAPURAM: Another well-performing company from the public sector stable of Kerala Government, Travancore Cochin Chemicals Ltd (TCCL), has plunged into loss.
TCCL, which has reported a net profit of Rs67.91 crore on an operating income of Rs372.6 crore in FY23, has logged a loss of Rs27.79 crore for the financial year 2023-24 (FY24) despite having earned an operating income of Rs278 crore.
The performance in the ensuing half year, the first half of the current year (H1-FY) that saw the company post a net loss of Rs 12.07 crore, doesn’t seem to bode well for the company.
“This raises a pertinent question: has TCCL joined the ranks of Kerala’s perennially loss-making PSU companies?” remarked an economist based in Thiruvananthapurm.
High power, employee cost
The weak performance of TCCL, according ICRA, a leading credit rating agency, is owing to unfavourable realisations because of high power and employee costs.
It also added that the performance is expected to remain subdued in the near term.
TCCL enjoys a position as one of the largest manufacturers of caustic soda in Kerala with a reputed clientele, and status as a state level public sector undertaking.
Established track record
TCCL, which was incorporated in 1949, is one of the largest manufacturers of caustic soda in Kerala and has established healthy relations with its customers and suppliers.
The sale of caustic soda contributed to a major portion (75-90%) of the revenues, followed by hydrochloric acid and chlorine.
TCCL was originally started as Travancore & Mettur Chemical Company (TMCC) in 1949 as a partnership entity between Fertilisers and Chemicals Travancore Limited (FACT) and Mettur Chemical and Industrial Corporation Ltd owned by the Seshasayee brothers with a caustic soda production capacity of 20 tonnes per annum (TPA).
In 1960, the Government of Travancore-Cochin acquired TMCC and it was renamed Travancore Cochin Chemicals Ltd.
TCCL manufactures basic industrial chemicals viz., caustic soda and chlorine products. The current licensed capacity of TCCL is 250 TPD of caustic soda, i.e., 82,500 TPA using the membrane cell technology.
