Tata Chemicals, leading maker of fertilisers, chemicals and food additives, has posted a 59 per cent rise in net profit in the first quarter ended June 30, strongly aided by growing demand for soda ash coupled with a drop in raw material prices and cost-cutting initiatives.

The company's net profit figure for the first quarter stood at Rs 94 crore.

According to sources, company's demand for soda ash had witnessed 8% growth which is driven by good demand from detergent makers as well as flat and container glass segments.

The sources further added that revenue from the chemical business contributed to 65 per cent of the operating profits with the balance from fertilisers.

On a consolidated basis, Tata Chemicals' net profit was dropped by 59% to Rs 43 crore as compared to Rs 107 crore due to the one-time provisioning of Rs 63 crore towards restructuring of overseas operations. Total income grew marginally to Rs 2,301 crore as compared to Rs 2,222 crore.

The sources said that the conglomerate has received Rs 667 crore in cash as fertiliser subsidy from the Centre and has an outstanding of Rs 520 crore.

The sources further added that the company had recorded cash reserves of Rs 1,253 crore as on June 30 and debt of Rs 5,839 crore. This entails a borrowing of $475 million and $300 million on the balance sheet of the US-based General Chemicals and Industrial Produce (GCIP) acquired in 2008.