Tata Chem hits new low, recovers

Tata Chemicals hit a new 52-week low today at Rs.298.55 but has since then recovered to Rs.304, though it continues to remain in the red.

The stock is painted red after its set of dismal numbers for Q4FY13 wherein consolidated net loss came in at Rs.188 crore compared to the net profit of Rs.139 crore (YoY). This loss was mainly on account of impairment charges, ditto like the way it had happened for Tata Steel. The company has stated that it had provided for a non-cash write down of goodwill of Rs 97.14 crore and other assets of Rs 386.69 crore and Rs 374.41 crore for the quarter and year ended March 31, respectively, primarily relate to the European operations.

The company has also stated subsidy receivables stands at Rs.1750 crore though it also stated that getting this subsidy disbursement will remain a challenge.