Tata Steel registers Rs 6,528 crore loss in Q4

Tata Steel reported a net loss of Rs 6,528.51 crore for the fourth quarter ended March 31. The loss is mainly due to a non-cash write down of Rs 8,355.91 crore related to European operations and drop in steel demand in the euro-zone.

Tata Steel however said it will not sale any of its assets to cover the loss.  

“We have not put out any assets on sale…It is not a one year process. It is a journey to regain competitiveness of some of the businesses we have in our portfolio for which we are investing significant amounts…,” Tata Steel’s group CFO Koushik Chatterjee told reporters in Mumbai on Thursday.

“We are fundamentally looking at improving competitiveness of Tata Steel Europe,” Koushik Chatterjee added.

According to Tata Steel, the current European recession is behind its poor performance in Euro zone and steel demand is almost 30 per cent lesser than the pre-2008 Euro financial crisis.

“These severely depressed conditions are expected to continue over the short-to-medium term and have led to a downward revision of cash flow expectations and the valuation of the Groups’ European operations,” Tata Steel said.

Tata Steel also confirmed that it will not proceed further with its greenfield steel project in Vietnam.

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