The announcement was made after market hours on Monday, 13 May 2013.
Meanwhile, the S&P BSE Sensex was up 29.43 points or 0.15% at 19,721.10.
On BSE, 1.48 lakh shares were traded in the counter as against average daily volume of 8.20 lakh shares in the past one quarter.
The stock hit a high of Rs 303.50 and a low of Rs 297.80 so far during the day. The stock had hit a 52-week high of Rs 454.90 on 4 July 2012. The stock had hit a 52-week low of Rs 292.70 on 16 April 2013.
The stock underperformed the market over the past one month till 13 May 2013, rising 2% compared with the Sensex's 7.94% gain. The scrip had also underperformed the market in past one quarter, sliding 18.82% as against Sensex's 0.43% rise.
The large-cap steel maker has equity capital of Rs 971.21 crore. Face value per share is Rs 10.
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Tata Steel said after market hours on Monday, 13 May 2013, that the company has substantially completed its year end impairment review for the consolidated financial statements for the financial year end 31 March 2013 (FY 2013) as required under the Indian Accounting Standards. This review was undertaken taking into account the external economic environment and macroeconomic conditions especially in Europe, the underlying demand-supply imbalance of the global steel industry and the prudent view of the forecast of the businesses. Following the review, the company expects non-cash write down of the goodwill and assets in the consolidated financial statements for the year ended 31 March 2013 of around $1.6 billion.
The impairment is primarily due to a weaker macroeconomic and market environment in Europe where apparent steel demand has fallen significantly in 2012-13 by almost 8% which in aggregate results in almost 30% since the emergence of the global financial crisis in 2007. This has led to a downward revision of cash flow expectations underlying the valuation of the European business. The impairment also includes the effect of write down of assets in the ferro chrome business in South Africa and the mini blast furnace in Tata Steel Thailand which has been impacted by the high cost of raw material feedstock. The final figures will be included in the full year results on 23 May 2013, Tata Steel said. The company's financial covenants are unaffected by the above non-cash write down of goodwill and assets, it added.
Tata Steel declares results for the year ended 31 March 2013 on 23 May 2013. The company reported consolidated net loss of Rs 763.06 crore in Q3 December 2012, higher than net loss of Rs 602.67 crore in Q3 December 2011. Net sales declined 3.5% to Rs 31821.50 crore in Q3 December 2012 over Q3 December 2011.
Tata Steel Group is one of the world's largest steel producers, with an aggregate crude steel capacity of more than 28 million tonnes per annum (MTPA) and approximately 81,000 employees across five continents.
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