Hindustan Copper (513599) Q4 03/04 earnings summary

Executive summary

• FY04 net loss narrowed to Rs.56.16 crore from Rs.147.70 crore in FY03; copper turnover was Rs.499.28 crore.

• A net profit in Q4 FY04 and higher copper prices supported expectations of a turnaround in FY05.

Financial highlights

• Turnover was Rs.499.28 crore vs Rs.505.68 crore; value of production rose to Rs.514.84 crore from Rs.501.53 crore.

• Loss before tax and after tax was Rs.56.16 crore, down from Rs.147.70 crore; EPS loss narrowed to Rs.1.55 from Rs.4.07.

• Profit before depreciation, provisions, write-offs and interest was Rs.33.73 crore, vs a loss of Rs.53.03 crore in FY03.

• Reported cash loss fell to Rs.25.90 crore from Rs.112.60 crore; 1,808 employees took VRS at a cost of Rs.126.75 crore.

Outlook and guidance

• FY05 priorities: lift mining output, reduce power and oxygen costs, improve operational efficiency and recovery, and lower input consumption.

• Plans include loan repayment and restructuring, interest-rate negotiations, equipment repairs and replacement, and clearing mine-development backlogs.

• Higher LME copper prices improved the viability of mining and other operations; management targeted sustained profitability.