Hindalco Net Dips 2.7% To Rs 390cr

The net profit of Hindalco Industries for 1996-97 fell 2.7 per cent to Rs 390 crore. Despite a one-month shutdown caused by power problems in April last year and low aluminium prices, net sales by the company dropped only 7 per cent to Rs 1,157 crore.

The production of primary metal by the aluminium major of the Aditya Birla group fell 5 per cent. Production of value-added products, too, dropped, affecting overall sales.

Analysts had predicted a net profit figure of Rs 370-400 crore and net sales of Rs 1,150-1,200 crore. Hindalco president A K Agarwala said the company, despite production constraints, had managed a decent performance.

 

On the BSE, the Hindalco share opened at Rs 915, against the previous close of Rs 932.50, and closed at Rs 907. The number of shares traded was 19,000 worth Rs 1.73 crore.

At the National Stock Exchange, the stock opened at Rs 930.90, touched an intra-day low of Rs 906.30, and closed at Rs 908.70. The bourse witnessed trading in 13,850 shares worth Rs 1.26 crore.

Compared with the first half, net sales of the company grew from Rs 513.6 crore to Rs 644 crore. Net profit, however, fell slightly in the second half to Rs 187 crore. The results are more or less in line with expectations. There are no major surprises, said an aluminium analyst with a foreign institutional investor.

On an expanded equity of Rs 74 crore, the earning per share works out to Rs 52.5 crore. The dividend of Rs 4.5 per share is lower than last years Rs 6.5 per share, calculated on an equity of Rs 49.6 crore. On the post-bonus equity of Rs 74.4 crore, the dividend for last year works out to Rs 4 per share. This years figure of Rs 4.5 per share is slightly higher.