Global steel giant Tata Steel's consolidated net profit plunged by 70.38 per cent to Rs 337.33 crore in the April-June quarter, mainly due to Rs 1,577 crore write-down in a project.
Tata Steel group had reported a net profit of Rs 1,139.01 crore during the corresponding quarter in 2013-14 .
Net profit for the quarter came in at Rs 337 crore, affected by exceptional charges despite improved operating performances across all geographies, the company said in a statement.
Exceptional charges included "the non-cash write down of goodwill and other assets of Rs 451.25 crore and Rs 1,125.40 crore respectively in its joint venture Rio Tinto Benga (Mauritius Ltd)", according to a BSE filing by the company.
In July this year, Rio Tinto has reached an agreement for sale of Rio Tinto Coal Mozambique which includes the Benga project in which the company has 35 per cent stake, the statement said.
“The company undertook an impairment review exercise of its investment in the Benga project and Board approved a non-cash write-down of Rs 1,577 crore,” it added.
