Hindustan Copper (513599) Q4 98/99 earnings summary

Executive summary

• FY1998-99 covered 12 months to September 30, 1999; turnover was Rs 479.49 crore and net loss was Rs 172.01 crore. Prior-year figures cover 18 months and are not directly comparable.

• Operations faced severe financial constraints, affecting access to critical inputs, mine output, and timely wage payments.

Financial highlights

• Sales were Rs 479.49 crore; value of production was Rs 513.47 crore, versus Rs 1,203.48 crore and Rs 1,180.22 crore, respectively, in the prior 18-month period.

• Net loss was Rs 172.01 crore; loss before depreciation, amortisation and interest was Rs 61.61 crore. Depreciation and amortisation were Rs 59.25 crore, and interest expense was Rs 51.15 crore.

• Other income was Rs 41.98 crore and included Rs 30.53 crore of provisions written back; inventory movement reduced income by Rs 8.70 crore.

• Copper sales were 36,801 tonnes; production of saleable metal products was 32,148 tonnes.

Outlook and guidance

• Average LME copper price fell to US$1,525/tonne from US$2,098/tonne in the prior period; the stated current range was US$1,800–1,850, with financial relief dependent on further improvement.

• KCC smelter and refinery debottlenecking from 31,000 to 45,000 tonnes/year was estimated at Rs 49.50 crore; financing remained uncertain, with foreign borrowing and possible Government plan funding under consideration.

• Turnaround prospects were tied to closing uneconomic mines, reducing surplus manpower and improving copper prices.