Additionally, the Company undertook a non cash impairment charge of INR 1,577 cores in the first quarter of FY'15 related to its investment in the Mozambique Coal Project. The total impairment charge for FY'15 is ₹6,391 crores in the consolidated financial results.

The Company's liquidity position and financial covenants are unaffected by the above noncash write-down.

Mining update

All our iron ore and chromite mines are operating. The Mines and Minerals Development and Regulation (MMDR) Amendment Act 2015 was passed by the Indian Parliament and notified in the Gazette on March 27, 2015. The Company has since been working with the respective State Governments of Jharkhand and Odisha on completing the necessary documentation for the extension of its mining leases as provided in the MMDR Act.

Dividend

The Board of Directors of the Company has recommended a equity dividend of INR 8 per share for FY'15.

Executive Comment

T V Narendran, Managing Director of Tata Steel India and South East Asia, said: "It has been a very challenging year for the steel industry with several macro headwinds at play. 
Despite this, we continued to outperform the industry and registered growth in deliveries in a relatively flat steel market. Our focus on our marketing franchise, strong customer relationships and various cost saving initiatives has helped us weather the weak business environment.

Steel realisations fell sharply during the second half of the year due to the deluge of imports combined with sluggish domestic demand. In addition, our performance was impacted by mining disruptions during the year. We are hopeful that steel demand will rebound this fiscal year on the back of higher investments across key industrial and infrastructure sectors as the government's "Make-In-India" campaign starts yielding results."

Koushik Chatterjee, Group Executive Director (Finance and Corporate), said: "Our performance this year in India was impacted by surging imports, declining commodity prices, muted demand and regulatory uncertainties in our captive mining operations.

Going forward, we expect the regulatory uncertainties on mining to be behind us, thus focusing on the phased commissioning of the Greenfield steel plant in Kalinganagar. The European business continued its improvement journey on the back of robust IJmuiden performance which has been significantly better than previous years."

End