Hindalco Q1 Net Rises 38% To Rs 125 Cr

Hindalco, the Rs 1,473 crore Aditya Birla Group company has posted a 38.3 per cent jump in net profit to Rs 125 crore for the first quarter ending June 30, 1998 as against Rs 91 crore in the corresponding period last year. Sales increased by 38.41 per cent to Rs 418 crore as compared to Rs 302 crore in the same period last fiscal. EPS jumped to Rs 67.1 from Rs 48.5 per share.

Addressing shareholders at the company's 39th AGM in Mumbai, Kumar Mangalam Birla, chairman, Hindalco said the improved performance is due to additional sales volumes coupled with higher realisations.

Shareholders at the AGM were enthusiastic about the company's performance in the last fiscal as well as the first quarter. However, they were expressed disappointment over the lower dividend payout ratio for the fiscal 1997-98.

Operating profit increased by 61.4 per cent to Rs 184 crore as against Rs 114 crore last year.

Operating margins during the period improved substantially to 44.01 per cent as against 37.74 per cent last year. Due to the commissioning of its new foil plant at Silvassa and also a tension leveler allied to the rolling mills was also commissioned during the last quarter.

As a result, the interest burden increased by 35.29 per cent to Rs 23 crore while depreciation charges increased by 61.11 per cent to Rs 29 crore. Tax pay-out more than doubled to Rs 37 crore from Rs 17 crore.

Speaking on the greenfield aluminium complex in Orissa named as Aditya Aluminium, Birla said substantial progress has been done on the project and Kaiser Bechtel, global engineering firm has been appointed to conduct a techno-economic feasibility study on the project.

The on-going aluminum alloy wheels plant is expected to be commissioned in the first quarter of 1999-2000. Stahlschmidt & Maiworm GMBH, aluminium wheel manufacturer will provide the technical support to this project. The first phase of this project proposes to produce around three lakh wheels per annum.