Hindalco Industries (HINDALCO) Q4 97/98 earnings summary

Executive summary

• FY1997-98 was a record year for production, sales and profitability; higher output, operating efficiency and new capacity supported stronger sales and realisations despite an economic slowdown.

• Became India’s largest primary aluminium producer, with expanded smelting capacity and a strategic push toward value-added products.

Financial highlights

• Net sales were Rs. 14,732.85 million, up 27% YoY; gross sales were Rs. 16,707.21 million.

• Profit before tax was Rs. 5,832.13 million versus Rs. 5,104.53 million; profit after tax was Rs. 4,962.13 million versus Rs. 3,909.53 million.

• Recommended dividend was Rs. 5.25 per equity share, compared with Rs. 4.50 in FY1996-97.

Outlook and guidance

• Higher metal availability, expanded power and alumina capacity, and value-added output underpin an encouraging outlook for aluminium production and sales.

• Foil, rolled-product and extrusion facilities are expected to support growth in domestic and export markets; a tension leveller was scheduled for commissioning in Q2 FY1998-99.

• A feasibility study for the proposed Aditya Aluminium complex was scheduled for completion in Q2 FY1998-99; a final project decision would follow the study.