20 June 2008
Hindalco
announces consolidated and standalone audited financial results
for year ended 31 March 2008
Click
here to view the results
| Consolidated
turnover |
Rs.
60,013 crore |
USD
15 billion |
| EBIDTA
|
Rs.
7,291 crore |
USD
1.8 billion |
| Proposed
dividend |
185
per cent |
|
Hindalco
Industries Ltd., the flagship company of the Aditya Birla Group,
today announced its consolidated and standalone audited financial
results for the year ended 31 March 2008.
| |
Audited
standalone
|
Audited
consolidated
|
| |
Year
ended
|
Year
ended
|
| (In
Rs. crore) |
31
March 2008
|
31
March 2007
|
31
March 2008
|
31
March 2007
|
| Net
sales and operating revenues |
19201.0
|
18313.0
|
60012.8
|
19316.1
|
| Other
income |
492.9
|
370.1
|
656.0
|
409.0
|
| EBIDTA |
3894.0
|
4385.1
|
7291.1
|
4839.5
|
| Depreciation
and impairment |
587.8
|
638.1
|
2456.5
|
864.5
|
| Interest
and financing charges |
280.6
|
242.4
|
1849.1
|
313.4
|
| Profit
before tax |
3025.6
|
3504.6
|
2985.5
|
3661.6
|
| Provision
for taxes |
705.4
|
940.3
|
909.8
|
958.4
|
| Adjustment
for earlier years (Net) |
540.7
|
-
|
(548.1)
|
(0.1)
|
| Profit
before Minority Interest |
2860.9
|
2564.3
|
2623.8
|
2703.1
|
| Minority
Interest |
-
|
-
|
220.6
|
16.1
|
| Share
in (Profit)/ Loss of Associates |
-
|
-
|
15.9
|
1.2
|
| Net
profit |
2860.9
|
2564.3
|
2387.3
|
2685.8
|
| EPS |
24.5
|
25.5
|
20.5
|
26.7
|
FY 2008 performance
Standalone results
The total revenue for the year at Rs. 19,201 crore reflects
a growth of 5 per cent over that of the last year, despite lower
realisation on account of stronger Rupee. Rupee appreciation,
coupled with higher cost due to inflationary pressures, resulted
in the fall in EBITDA by 11 per cent.
These results need to be viewed in the perspective of a very
challenging environment in which they were achieved when virtually
all macro-economic factors turned adverse. Rupee appreciation,
duty cut, TcRc fall and unrelenting inputs cost push squeezed
margins at both ends.
The pronounced strengthening of the Indian Rupee vis-à-vis
the US dollar adversely impacted both domestic and export realisations
in quarter-on-quarter and year-on-year periods. LME was very
volatile and started strengthening towards the end of the year;
however the average cash LME for the year was marginally lower
than previous year. Significant higher production from our brownfield
expansions of both copper and aluminium businesses drove increasing
sales volumes in quarter-on-quarter in all four quarters of
FY08.
A lower TcRc and lower duty differential severely affected the
copper business. Regardless, business managed to maintain margins
on the back of a very strong performance in the fourth quarter.
Higher volumes, better plant efficiencies across the board,
enhanced by-product/market mix were the drivers.
Aluminium business reported revenues of Rs. 7,145 crore against
Rs. 7,344 crore in the previous year, while PBIT dropped by
17 per cent from Rs. 2,929 crore to Rs. 2,423 crore. Copper
revenue grew by 10 per cent from Rs. 10,978 crore to Rs. 12,066
crore, while PBIT saw a marginal drop of 3 per cent from Rs.
517 crore to Rs. 503 crore. Hindalco continues to be the market
leader in both aluminium and copper.
Adjustment for earlier year (net) under tax expenses represents
write back of provision for tax resulting from change in estimation
of tax liability on progress in tax assessments.
Consolidated
results
The total revenue for the year at Rs. 60,013 crore and PBIT
at Rs. 4,835 crore were up by 211 per cent and 22 per cent
respectively over last year.
Aluminium business revenue was Rs. 47,054 crore and PBIT was
Rs. 3,214 crore, while the copper revenue was Rs.12,340 crore
with a PBIT of Rs. 931 crore.
The consolidated results for the year include the performance
of Novelis for the period 16 May 2007 (date of acquisition)
to 31 March 2008.
Novelis
The current phase of consolidation and growth has a gestating
impact on consolidated profitability.
Post the acquisition of Novelis effective 15 May 2007, Hindalco
is now a global player with a strong presence in five continents
and with a product portfolio which is a natural hedge against
the volatility of aluminium prices. Novelis has reported a
net profit of USD 28 million (under US GAAP) for the period
16 May 2007 to 31 March 2008 vis-à-vis a loss of USD
265 million (under US GAAP) in FY2007. The reported results
for the post-acquisition period were favourably impacted by
certain income and expense items, aggregating to a net USD
21 million on a pre-tax basis, associated with fair value
adjustments recorded at the date of acquisition.
The improved results came on the back of strong operational
focus and increase in capacities in fast growing markets of
Asia and South America. Total shipments increased from 3113
kt to 3150 kt. Novelis countered inflation and challenging
market conditions in certain geographies with portfolio optimisation,
price increases, working capital improvements and reduction
in corporate costs. The company's exposure to contracts with
metal price ceilings reduced during the year. The benefits
can be seen in increased revenues and stronger cash flows.
The integration activities are proceeding smoothly and the
acquisition is expected to significantly enhance shareholder
value.
Dividend
The Directors have recommended a dividend of Rs 1.85 per share
(Last year Rs 1.70 per share). This will be paid in line with
the applicable regulations. The total outgo including tax
on dividend would be Rs.265.5 crore (Last year: Rs. 202.2
crore).
Take
out of bridge loan
The Directors have approved a comprehensive financing plan
for take out of the existing bridge financing for acquisition
of Novelis. This take out financing will be in place by 10
November 2008. The financing plan envisages the following:
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|
Rights
issue
The Directors have approved the issue of equity shares
for an amount not exceeding Rs. 5000 crore to existing
shareholders on rights basis. The share ratio for the
rights issue will be 1:3, i.e., one right of Re.1 each
for every three equity shares of Re.1 each held by the
shareholder as on the Record Date to be announced later.
The price per share for the rights issue would be decided
by the Board and announced at a later date.
|
|
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|
Other
sources
The balance of the bridge loan will be repaid by sourcing
domestic/international debt financing and liquidation
of treasury. |
|
