Tata Steel fell 3.89% to Rs 346.70 at 9:30 IST on BSE after the company posted consolidated net loss of Rs 5674.29 crore in Q4 March 2015 as compared to net profit of Rs 1035.87 crore in Q4 March 2014.
The result was announced after market hours yesterday, 20 May 2015.
Meanwhile, the S&P BSE Sensex was up 66.63 points or 0.13% at 27,873.41.
On BSE, so far 2.79 lakh shares were traded in the counter as against average daily volume of 8.09 lakh shares in the past two weeks.
Shares of steel producer hit a high of Rs 351 and a low of Rs 344.45 so far during the day.
Tata Steel's total income fell 20.53% to Rs 33805.59 crore in Q4 March 2015 over Q4 March 2014. Total exceptional expense surged to Rs 4811.20 crore in Q4 March 2015 from Rs 45.84 crore in Q4 March 2014. The exceptional expense included non-cash write down of goodwill and other assets in certain nonperforming business units with the group, primarily relating to European operations and the group's investments in coal assets.
More From This Section
The company recognized a non-cash write-down of goodwill and assets in the consolidated financial results in Q4 March 2015 of Rs 4951 crore, mainly relating to the Long Products UK business in Tata Steel Europe which is now fully impaired. The impairment include a write-down of investments in overseas raw materials projects in Mozambique and Ivory Coast and the Taconite project in Canada because the economic viability of these projects remains uncertain at the current level of commodity prices.
Additionally, the company undertook a non cash impairment charge of Rs 1577 core in Q1 June 2014 related to its investment in the Mozambique Coal Project. The total impairment charge for financial year ended 31 March 2015 (FY 2015) is Rs 6391 crore in the consolidated financial results.
The construction of Kalinganagar Project (KPO) has progressed well and heating of the coke ovens commenced in the second week of May after all clearances were received. The project will follow a commissioning sequence over the next six months as each facility gets commissioned. Commercial production is expected to commence in second half of year ending 31 March 2016 (FY 2016). The Kalinganagar Steel Plant is a state-of-the-art 3 million tonnes plant that will increase production capacity, widen the product portfolio and diversify the customer base/
With reference to the news captioned "Tata steel in talk to buy visa steel", Tata Steel clarified after market hours yesterday, 20 May 2015, the company as part of its business strategy regularly evaluates organic and inorganic growth opportunities across various segments of its operations. The board and management of Tata Steel are committed to making disclosures at the appropriate time and further clarified that currently there has been no event that requires a disclosure under Clause 36 of the listing agreement.
Tata Steel said that the board of directors of the company at its meeting held on 20 May 2015, inter alia, has recommended a dividend of Rs 8 per share for the year ended 31 March 2015 (FY 2015).
Powered by Capital Market - Live News