8 May 2012
Hindalco announces Q4 FY 2011-12 standalone results [Unaudited]
Highest-ever aluminium metal production
here to view the results
Commendable performance despite steep cost escalation
|(In Rs. crore)
|Revenues from operations
|Profit Before Interest Depreciation and Taxes
|Profit before tax
|Provision for taxes
|Basic EPS - rupees
|Note: Certain description and /or figures of earlier periods have been changed/regrouped to conform to current practices
Hindalco, the Aditya Birla Group flagship company today announced its unaudited results for the fourth quarter and year ended March 31, 2012.
Results for FY12
Standalone revenue for the year crossed the Rs. 25,000 crore mark and stood at Rs. 26,597 crore driven by higher volume and realisation.
Profit before interest and depreciation was Rs. 3,721 crore, an increase of over 6 per cent compared to FY11, on account of higher volumes in aluminium business and better Treatment and Refining Charges (TcRc) in copper business, along with improved efficiencies and higher other income.
In the aluminium business, there has been significant increase in costs, especially in case of coal (by 20 per cent), furnace oil (by 40 per cent), caustic soda (by 25 per cent) and carbon (30 per cent). The cost surge was partly offset by asset-sweating and improving operational efficiencies, coupled with better realisation. The profit before interest and taxes stood at Rs. 1,822 crore for FY12 compared to Rs. 2,004 crore in FY11.
The capital employed for aluminium business at Rs. 23,912 crore as on March 31, 2012 includes Rs. 16,211 crore on Mahan, Hirakud rolled and Aditya Aluminium projects, which are at various stages of completion. The balance largely pertains to the existing aluminium operations.
In the copper business, revenue stood at Rs. 17,575 crore compared to Rs. 15,902 crore in FY11, due to higher LME and by-product revenue. Profit before interest and taxes increased by 33 per cent to Rs. 802 crore, due to improved efficiencies, higher TcRc and by-product credit, notwithstanding higher energy costs and a planned shutdown in FY12.
Results for Q4FY12
Net sales and operating revenues at Rs. 7,647 crore in Q4FY12 are up 12 per cent over Q4FY11, driven by higher volume despite lower realisation. Profit before interest, depreciation and taxes is maintained at Q4FY11 levels.
Net profit for the quarter is marginally lower than that of the corresponding quarter in the previous year due to lower provisioning for taxation in Q4FY11 on account of lower effective tax and tax write-back.
Of the total quarterly revenues of Rs.7,647 crore, aluminium business contributed Rs. 2,499 crore, with profit before interest and taxes at Rs. 484 crore vis-à-vis Rs. 562 crore in Q4FY11. The results would have been better, but for increased input costs and lower realisation on the back of lower aluminium LME.
In the copper business, revenues for the quarter are higher at Rs. 5,154 crore, from Rs. 4,637 crore in Q4FY11, consequent to better mix and by-product sales. Profit before interest and taxes are up 43 per cent to Rs. 293 crore from Rs. 206 crore due to higher production, improved efficiencies, higher TcRc and by-product credit, offset to some extent by higher energy costs.
The company allotted 150,000,000 warrants on a preferential basis to the promoters on March 22, 2012, entitling them to apply for and obtain allotment of one equity share of Re 1 each at a price of Rs. 144.35 per share against each such warrant at any time on or before the expiry of 18 months from the date of allotment in one or more tranches. The company has received an amount equal to 25 per cent of the price of each such warrant.
To further augment financial resources, the company has issued 10-year 9.55 per cent secured redeemable non-convertible debentures for a total amount of Rs. 3,000 crore on private placement basis on April 25, 2012. These debentures are listed on the wholesale debt market segment of National Stock Exchange (NSE).
Aluminium production registered a growth of 4 per cent over Q4FY11 backed by improved operating efficiencies and continued focus on asset-sweating.
The value-added downstream sales grew by 12 per cent over last year’s corresponding quarter.
Quarterly cathode production and CCR production was up by 11 per cent and 21 per cent respectively. The cathode production for the year is lower due to a planned shutdown in FY12.
A review of the projects of the company and its subsidiaries shall be published along with the consolidated results.
The volatile commodity prices and spiralling energy costs pose significant challenge for the company. The company is confident to mitigate the cost pressure to a larger extent on the strengths of integration in operation and operational efficiencies.
Statements in this “Press Release” describing the company’s objectives, projections, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the company’s operations include global and Indian demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in the company’s principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the company conducts business and other factors such as litigation and labour negotiations. The company assume no responsibility to publicly amend, modify or revise any forward looking statement, on the basis of any subsequent development, information or events, or otherwise.