Tata Steel Reports Rs 5,674 cr Loss for Jan-Mar Quarter

Tata Steel reports Rs 5,674 cr loss for Jan-Mar quarter

Birds fly above part of the TATA steel plant in Scunthorpe northern England, October 15, 2014. (Photo: Reuters)

Tata Steel today reported a consolidated net loss of Rs 5,674.29 crore for the quarter ended March 31, 2015, mainly due to non-cash write downs.

The domestic steel giant, which is among the top-ten global steel companies, had reported a net profit of Rs 1,035.87 crore in the year-ago period.

Total consolidated income of the firm declined by 21 per cent to Rs 33,666.18 crore in January-March quarter of 2014-15 fiscal, from Rs 42,428.05 crore in the same quarter of the 2013-14, it said in a BSE filing.

For the 2014-15 fiscal, the firm posted a consolidated net loss of Rs 3,925.52 crore. It had reported a net profit of Rs 3,594.89 crore in 2013-14.

Consolidated total income declined to Rs 1,39,503.73 crore in 2014-15, from Rs 1,48,613.55 crore during 2013-14.

In the filing, Tata Steel said the exceptional item of Rs 338.30 crore and Rs 4,811.20 crore in the consolidated results “represent non-cash write down of goodwill and other assets in certain non-performing business units within the Group.” “In the consolidated results, it primarily relates to the European operations and the Group’s investments in coal assets,” it added.

Last week, the firm said the total impairment charge for FY 2014-15 would be around Rs 6,500 crore in the consolidated financial results.

The company had said it expects to recognise a non-cash write-down of the goodwill and assets in consolidated results in the fourth quarter of around Rs 5,000 crore, mainly relating to the Long Products UK business in Tata Steel Europe which will now be fully impaired.

Additionally, the company undertook a non-cash impairment charge of Rs 1,577 core in the first quarter of the FY 2014-15 towards investment in the Mozambique Coal Project.

Tata Steel is the world’s second most geographically-diversified steel producer with operations in 26 countries and an annual crude steel capacity of nearly 30 million tonnes per annum. The Group recorded a turnover of USD 24.81 billion in 2013-14

Shares of Tata Steel today fell by 1.85 per cent to settle at Rs 361.35 apiece at the BSE.