The Hindu Business Line : Haldia Petro profit seen at Rs 50 cr in 2003-04

Mr Ashutosh Bose, Executive Vice-President (finance and accounts), told Business Line that while the profit estimates are based on a Rs 120-crore saving that HPL is likely to make on interest cost savings on account of its corporate debt restructuring, the company "increased its EBDIT (earnings before depreciation interest and taxes) from Rs 307 crore in 2002-03 to over Rs 775 crore in 2003-04."

The net profit estimates for the just closed fiscal year, ride on an `extraordinary income' of about Rs 75 crore made by HPL during the year from one-time-settlement deals struck with its project licensors and foreign contractors.

Mr Bose said that the Rs 50-crore estimated profit compares with Rs 518 crore net loss reported by the company for the year-ended March 31, 2003. HPL's accumulated losses then, stood at Rs 1,057 crore.

Mr Swapan Kumar Bhowmik, Chief Executive, said that while it was true that several milestones on the CDR road map was yet to be met, "HPL was now very firmly on the path to profitability, having doubled its operational profits."

He said both polymers and chemicals were selling very well and capacity utilisation at its naphtha cracker unit ranged around 60 per cent during the two lean months of the year (April and May) and often touched 111 per cent.

He noted that the petrochemical industry has been in an up-cycle since last year. "This is expected to last four years." He said that HPL was now chalking out an expansion programme to increase its ethylene production capacity to six lakh tonnes. "The project will be put up before the Board once a bankable feasibility report was ready," he said.

HPL now has a capacity of producing 5.2 lakh tonnes of ethylene.

On the issue regarding the injunction brought on HPL by UTI, Mr Bhowmik said that efforts were now on to vacate the injunction order. The matter is scheduled for hearing in the Calcutta High Court on April 15. However, the receiver appointed by the Debt Recovery Tribunal will not take any step till that date.

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