Tata Steel has reported a consolidated net loss of Rs 5,674.29 crore for the fourth quarter ended March 31, 2015, as compared with a profit of Rs 1,035.87 crore in the same quarter of the previous fiscal mainly on account of non-cash writedowns.
During the quarter, the company reported exceptional items of Rs 338.30 crore and Rs 4,475.92 crore. According to the company, these exceptional items in the standalone and consolidated results represent non-cash writedown of goodwill and other assets in certain non-performing business units. In the consolidated results, it primarily relates to the European operations and the group’s investments in coal assets. Net sales for the company during the reported quarter declined 20.66 per cent to Rs 33,336.81 crore as against Rs 42,017 crore in the fourth quarter of the previous fiscal.
In a communiqué to the exchanges on May 14, Tata Steel had indicated that it expects to recognise a non-cash writedown of the goodwill and assets in the consolidated financial results in the fourth quarter for the year ended March 31, 2015, of approximately Rs 5,000 crore, mainly relating to the long products UK business in Tata Steel Europe, which now will be fully impaired. The company had undertook a non-cash impairment charge of Rs 1,577 crore in the first quarter of FY 2014-15 towards its investment in the Mozambique coal project due to which it expected total impairment charge for FY 2014-15 to be around Rs 6,500 crore in the consolidated financial results.
Tata Steel is among the top global steel companies with an annual crude steel capacity of nearly 30 million tonnes per annum. It is now the world’s second-most geographically diversified steel producer with operations in 26 countries and commercial presence in over 50 countries.