Tata Chemicals shares slip after UK subsidiary gets fined up to 1.1 mn euro

Shares of Tata Chemicals fell 4.1 per cent at Rs 1,018.35 per share on the BSE in Friday’s intraday trade. This came after company’s Tata Chemicals Europe, was fined £1.1 million by the Chester Crown Court in the UK for a safety incident in 2016. 

The incident involved a contractor who sustained injuries at one of the company's sites in the UK, tragically resulting in his passing a few weeks after being discharged from the hospital.

In a filing with the stock exchange, the company stated, "We hereby inform you that on June 5, 2024, the Chester Crown Court, United Kingdom (UK) ordered a fine of GBP 11,00,000 on Tata Chemicals Europe Ltd, the company’s subsidiary in the UK for a safety incident which occurred in 2016."

Tata Chemicals reported its first quarterly loss in nine years in May this year for the fourth quarter of fiscal year 2023-24 (Q4FY24), hurt by a one-time charge incurred in its UK operations along with lower prices and demand of soda ash. It reported a consolidated net loss of Rs 850 crore in the quarter ended March 31, compared to a profit of Rs 709 crore. a year ago.

Tata Chemicals said it incurred a non-cash write down of assets aggregating to Rs 963 crore as an exceptional loss in respect of its UK operations.

Revenue from operations fell 21 per cent to Rs 3,475 crore, making it the company's third consecutive quarter of decline.

At 12:14 AM, Tata Chemicals  was trading 1.29 per cent higher at Rs 1048.55 a piece on the BSE. By comparison the BSE Sensec climbed up by 1.83 per cent. The stock of the company is presently trading at a price to earnings multiple of 30.20 times with an earning per share of Rs 35.17.