The Hindu Business Line : Indal posts Rs 132-cr net; turnover up at Rs 1,614 cr

INDIAN Aluminium Company Ltd (Indal), an Aditya Birla Group outfit, has posted its best-ever financial results for the year ended March 2004, by recording a net profit of Rs 132.2 crore on a sales turnover over of about Rs 1,614 crore.

In fact, impressive growth was recorded on all key performance measures, namely sales, PBT, net profit and exports, which crossed Rs 100 crore in each of the four quarters despite hardening of rupee. The company's total export earnings stood at about Rs 472 crore.

This was attributed to (i) record output of alumina, virgin metal and sheet; (ii) sales volume in sheet and alumina with significant rise in exports; (iii) superior product-mix; (iv) better capacity utilisation, efficiency improvement and efficient cost management.

The sales income increased by 18 per cent at about Rs 1,614 crore (Rs 1,371 crore), while PBT was 2 per cent higher, leaving net profit at about Rs 132 crore.

Exports went up by 20 per cent over last year's Rs 392 crore. Although Indal did well during the year under review, there is no craze for the company's shares in the market, as it has already suspended trading of its shares in the National, Mumbai and Calcutta stock exchanges on the basis of approval by these exchanges.

The company has now applied for de-listing of its global depository receipts from the Luxembourg Stock Exchange. However, its shareholders, who could not participate in the earlier offer/exit option that closed in August 2003, can tender the shares held by them in favour of Hindalco Industries Ltd at a consideration of Rs 120 per share till February 15, 2005. Incidentally, Hindalco, also an Aditya Birla Group company, controls 96.4 per cent shares in Indal.

The expansion of smelting capacity from 57,000 to 65,000 tonnes at its Hirakud smelter in Orissa has been completed by way of transferring of electrolytic pots from Belgaum in Karnataka. Initiatives have been taken to further expand the Hirakud's smelting capacity to the level of 1,00,000 tonnes per annum.

In order to meet the power requirement for its smelter, the company's captive power plant at Hirakud is being expanded from 67.5 MW to 167.5 MW. The expansion is progressing as per schedule, while activities on further expansion by 100 MW to 267.5 MW will start soon, according to Indal source.