Hindustan Copper (513599) Q4 97/98 earnings summary

Executive summary

• Extended FY97-98 covered 18 months, Apr 1, 1997–Sep 30, 1998; sales were Rs 1,203.48 crore and reported net loss was Rs 105.73 crore.document-source7/document-source

• Ore production, milling and metal in concentrates exceeded targets; refined copper and wirerod output fell short, reflecting concentrate constraints and weak rod offtake.document-source4document-source6/document-source

Financial highlights

• Sales were Rs 1,203.48 crore; production cost excluding depreciation, amortisation and interest was Rs 1,279.69 crore for the 18-month period.document-source7/document-source

• Loss before depreciation, amortisation and interest was Rs 109.24 crore; loss before tax and after the interest waiver was Rs 105.73 crore.document-source7/document-source

• Government-loan interest waiver of Rs 155.76 crore was credited to the P&L; total outstanding interest waived was Rs 167.43 crore.document-source7/document-source

• Copper sales totalled 88,244 tonnes; total turnover was reported at Rs 1,202.60 crore.document-source5/document-source

Outlook and guidance

• LME copper averaged US$2,098/tonne in FY97-98 versus US$2,257 in FY96-97 and was then US$1,400–1,450/tonne, pressuring imported-concentrate smelter economics.document-source14/document-source

• Short-term turnaround measures included Mosaboni closure, capital restructuring, capacity debottlenecking at Khetri and ICC, Malanjkhand mine expansion and hydrometallurgical copper extraction.document-source14/document-source

• Khetri expansion to 100,000 tpa remained in abeyance amid funding constraints; approved debottlenecking targets capacity growth from 31,000 to 45,000 tpa.document-source10document-source14/document-source

• Turnaround consultant A.T. Kearney submitted its final report in Jan 1999; management was reviewing its recommendations before Board and Government submission.document-source14/document-source