Hindustan Copper (513599) Q4 01/02 earnings summary

Executive summary

• FY02 turnover was Rs 604.98 crore; net loss was Rs 184.04 crore, with a cash loss of Rs 142.7 crore. FY02 covered 12 months versus 18 months in the prior comparison period.

• Copper sales reached 45,501 tonnes, up 10.98% as reported; manpower fell by 2,541 to 9,502, mainly through voluntary retirement.

Financial highlights

• FY02 sales were Rs 604.98 crore versus Rs 945.58 crore in the prior 18-month period; value of production was Rs 586.66 crore versus Rs 1,001.66 crore.

• Net loss was Rs 184.04 crore versus Rs 196.44 crore in the prior 18-month period; cash loss was Rs 142.7 crore versus Rs 143.38 crore.

• FY02 included Rs 415.66 crore of grant-in-aid income associated with VRS expenditure following conversion of government non-plan loans into grants.

Outlook and guidance

• Turnaround priorities were to eliminate operating losses, reach cash break-even, reduce manpower to 6,500, lower power, fuel and oxygen costs, and improve recovery and yield.

• Government planned to disinvest its 98.95% holding to a strategic buyer; due diligence visits were completed and a draft share purchase agreement was circulated to interested parties.

• Closure of Surda and Khetri mines and Mosaboni Concentrator Plant was under consideration; intended closure date for specified mines and establishments was 15 November 2002, subject to approvals.