Tata Chemicals drops over 4% after UK court imposes GBP 1.1-million fine on subsidiary

The Tata Group firm informed the stock exchanges in a filing that the Chester Crown Court, United Kingdom, ordered a fine of GBP 11,00,000 on Tata Chemicals Europe Ltd on June 5, 2024.

The hefty fine has been imposed in relation to a safety incident that occurred in 2016 when a contractor sustained injury at one of Tata Chemicals Europe’s sites in the UK, subsequently passing away unexpectedly, a few weeks following his discharge from the hospital.

Shares of Tata Chemicals dropped as much as 4.26% to an intraday low of ₹1,017.95 per piece on the NSE. However, the stock recovered some of the losses to close 0.24% lower at ₹1,060 per piece on the NSE.

For the financial year ended March 31, 2024, Tata Chemicals’s net profit declined substantially by more than 82% to ₹435 crore compared to ₹2,434 crore reported in the previous financial year.

Its consolidated revenue from operations also dropped 8.2% in the full financial year 2023-24 to ₹15,421 crore as opposed to ₹16,789 crore in the preceding fiscal.

For the quarter ended on March 31, 2024, Tata Chemicals posted a net loss of ₹841 crore compared to a net profit of ₹692 crore in the same period last year, while the revenue from operations too took a hit of 21.2% on a year-on-year (YoY) basis to ₹3,475 crore in the period from ₹4,407 crore in the corresponding quarter a year-ago.

In FY24, the Group recognised a non-cash write down of assets aggregating to ₹963 crore which has been disclosed as an exceptional loss, related to the company’s UK operations of Soda ash and Bicarbonate.

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