Hindalco Net Zooms 44% To Rs 839 Crore

Mumbai, April 26 | Updated: Apr 27 2004, 05:30am hrs
Riding on continued emphasis on value added products and aggressive marketing, Hindalco Industries Ltd has posted a substantial increase in net profit at Rs 222 crore for the fourth quarter ended March 31, 2004 as against Rs 19.6 crore in the corresponding period last year.

Net sales for the reporting quarter rose to Rs 1,902 crore from Rs 1,332 crore, a growth of 42.8 per cent.

The consolidated net profit showed a 44.1 per cent rise in net profit at Rs 839 crore for the fiscal ended March 31, 2004, compared to Rs 582 crore in the previous year. Other income for the fiscal ended March 31, 2004 also increased to Rs 245 crore as against a previous Rs 218 crore.

Hindalcos board has recommended a dividend of Rs 16.5 per share aggregating to Rs 172 crore.

Net sales for the year ended March 31, 2004 increased 24.2 per cent to Rs 6,191 crore as against Rs 4,986 crore last year.

Hindalco managing director D Bhattacharya said that the companys brownfield expansion for enhancing its copper smelting capacity from 1,50,000 metric tonne per annum to 2,50,000 mtpa has been completed and production has commenced in February.

The company has also undertaken another expansion to enhance the smelting capacity from 2,50,000 mtpa to 5,00,000 mtpa which will incur an investment of Rs 1,200 crore over a period of 24 months.

The final rates of concession for di-ammonium phosphate (DAP) and other complex fertilisers up to period ended December 31, 2003, have been notified. Accordingly, Rs 37.6 crore being revenue differential for earlier years on account of subsidy has been recognised and included in sales of quarter ended September 30, 2003.

Mr Bhattacharya said that while aluminium margins improved, the impact was partly offset by low profitability in copper. This, he said, was due to refining charges, an appreciating rupee and tariff reductions.

The company in a release said that it remains committed to pursuing value adding growth opportunities like leveraging synergies with Indal, further expansion in copper, acquisition of additional copper and bauxite mines and evaluating various growth opportunities in aluminium, both through the organic and inorganic route.

Developmental work at the Nifty and the Mount Gordon mines in Australia was progressing satisfactorily and in line with plans, the company said.

The first shipment of concentrate from Mount Gordon mines is expected by mid-fiscal 2005 and supply from Nifty is slated to commence by mid-fiscal 2006.

Talking about Indal, Mr Bhattacharya said that Hindalcos stake pursuant to the open offer has increased to 96.5 per cent and the Indal scrip has been since delisted.