Hindalco Industries (HINDALCO) Q4 99/00 earnings summary

Executive summary

• FY1999-00 delivered record volumes and revenues, with stronger utilisation, yields, product mix and export sales supporting higher operating profit and pre-tax profit.

• Strategic priorities included the proposed Indal acquisition, Renukoot brownfield expansion, and shelving the Orissa greenfield project after returns failed value criteria.

Financial highlights

• Gross sales revenue rose 14.6% YoY to Rs.23,075.7 million; net turnover increased 15% to Rs.20,311.8 million.

• Operating profit grew 20.9% to Rs.9,400.3 million; PBT rose 23.8% to Rs.8,836.6 million.

• PAT before extraordinary items increased 12.1% to Rs.6,351.6 million; net profit after the Rs.227.9 million greenfield write-off rose 8% to Rs.6,123.7 million.

• EPS was Rs.82.2 versus Rs.76.1; cash EPS was Rs.100.4 versus Rs.92.8.

Outlook and guidance

• Renukoot expansion of Rs.18 billion is planned to add 100,000 TPA smelting, 210,000 TPA alumina refining and matching power capacity; phased commissioning is scheduled by end-FY2002-03.

• Value-added products are targeted to exceed 60% of sales volumes within two years, from 52%, to reduce LME-linked earnings volatility.

• Global aluminium consumption was forecast to grow 4–6% p.a. over the next two years; global supply growth was expected near 4% p.a.