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Friday, April 27, 2001



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Hindalco net up 10.7 pc at Rs 678 cr

Our Bureau

MUMBAI, April 26

HINDALCO Industries Ltd has ended 2000-2001 with a 10.72 per cent rise in net profit to Rs 678.1 crore compared to the previous year's Rs 612.4 crore.

The company has declared a dividend of Rs 12 per share (120 per cent), entailing a total outgo of Rs 89.36 crore. At the BSE, Hindalco's scrip dipped by Rs 19.60 to close on Thursday at Rs 823.30.

Net sales grew by 12.02 per cent to Rs 2,275.4 crore from the Rs 2,031.2 crore of the year-ago period. Other income declined by 5.19 per cent to Rs 131.5 crore (Rs 138.7 crore in 1999-2000).

At a press briefing on Thursday, Mr A.K. Agarwala, Wholetime Director, attributed the dip in other income to the earlier deployment of sizable funds for the acquisition of

Indal and the latter's declaration of dividend only a few days ago.

Total expenditure rose to Rs 1,222.5 crore (Rs 1,091.1 crore).

While interest was Rs 61.9 crore (Rs 59.7 crore) and depreciation, Rs 142.4 crore (Rs 135.4 crore), the provision for tax rose to Rs 302 crore (Rs 248.5 crore).

In the fiscal's last quarter, wherein Mr Agarwala said, operating costs had risen with no big improvement in realisations, Hindalco registered a 2.2 per cent dip in net profit to Rs 156.9 crore (Rs 160.5 crore) despite a 11.9 per cent rise in net sales t o Rs 598.3 crore (Rs 534.9 crore).

The company has begun a profit improvement exercise, expected to yield annualised benefits of Rs 40-50 crore in two years.

On an installed capacity of 2,42,000 tonnes, Hindalco registered a metal production in 2000-2001 of 2,51,492 tonnes (2,48,930 tonnes). Output of rolled products rose by 7.2 per cent to 62,800 tonnes (58,594 tonnes), while alumina production (calcined) ro se by six per cent to 4,76,700 tonnes (4,53,305 tonnes).

Extrusions manufacture touched 18,602 tonnes (14,959 tonnes), while its foil plant raised production to 13,430 tonnes (7,537 tonnes). The company's Silvassa plant produced 23,050 aluminium alloy wheels.

However, with demand from the electrical sector ruling poor for redraw rods, production of the same was down to 43,946 tonnes (49,018 tonnes). Mr Agarwala said that impact of the temporary closure of two bauxite mines in Chhatisgarh and Jharkhand owing t o insurgency, can be contained through tapping inventories and sourcing from other mines.

The company is engaged in a Rs 1,800-crore brownfield expansion programme that will hike its alumina capacity from 4,50,000 tonnes to 6,60,000 tonnes, its aluminium metal capacity from 2,42,000 tonnes to 3,42,000 tonnes and its power generation capacity from 619 MW to 769 MW.

The project is expected to yield 15,000 tonnes of additional metal in current fiscal. Pointing to Hindalco's low debt-equity ratio of 0.15, Mr Agarwala said the company will access the markets to finance its capex only if the right opportunity arose.

For FY 2002, Hindalco's production targets are as follows: metal production 2,70,000 tonnes, rolled products 69,000 tonnes, extrusions 18,600 tonnes, foil 16,200 tonnes, wire rod 48,000 tonnes, and alumina 4,83,000 tonnes.

With a weak last quarter and consequent production cuts, despite an otherwise six per cent rise in global aluminium consumption in 2000, Mr Agarwala said that globally, sectoral growth may be three per cent in 2001. For the domestic market, he foresees a growth of 6-8 per cent in current fiscal.

Mr Agarwala said Hindalco, which last raised prices by Rs 3,000-4,000 in February 2000, is not looking at any immediate price hike. Landed cost of imports in Mumbai is still on the average Rs 10,000 costlier than Hindalco's produce, he said.

Related links:
Hindalco Q3 net rises 11 pc

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