Tata Steel fell 2.64% to Rs 356 at 9:16 IST on BSE after the company said it expects to recognize a non-cash write-down of the goodwill and assets in the consolidated financial results in Q4 March 2015 of approximately Rs 5000 crore.
The announcement was made after market hours yesterday, 14 May 2015.
Meanwhile, the S&P BSE Sensex was up 153.78 points or 0.57% at 27,359.84.
On BSE, so far 40,000 shares were traded in the counter as against average daily volume of 8.14 lakh shares in the past two weeks.
The stock hit a high of Rs 359.80 and a low of Rs 356 so far during the day.
Tata Steel announced after market hours yesterday, 14 May 2015, that the company expects to recognize a non-cash write-down of the goodwill and assets in the consolidated financial results in Q4 March 2015 of approximately Rs 5000 crore, mainly relating to the Long Products UK business in Tata Steel Europe which will now be fully impaired. The impairment also includes a write down of investments in overseas raw materials projects in Mozambique, Ivory Coast and 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 crore in Q1 June 2014 towards its investment in the Mozambique Coal Project. The total impairment charge for the year ended 31 March 2015 (FY 2015) would be around Rs 6500 crore in the consolidated financial results. The details of the impairments will be included in the audited financial results on 20 May 2015. The company's liquidity position or financial covenants are unaffected by the above non-cash write down, Tata Steel said.
Tata Steel unveils its Q4 March 2015 results on 20 May 2015. The company's consolidated net profit slumped 68.8% to Rs 157.11 crore on 8.5% decline in net sales to Rs 33323.84 crore in Q3 December 2014 over Q3 December 2013.
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Tata Steel Group is among the top-ten global steel companies with an annual crude steel capacity of nearly 30 million tonnes per annum.
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