The Hindu Business Line : Haldia Petro posts maiden profit

Mr Tarun Das, Chairman, Haldia Petrochemicals Ltd, flanked by Dr P. Chatterjee, Vice-Chairman (left), and Mr Sabyasachi Sen, Principal Secretary, Commerce and Industries, West Bengal, after the board meeting in Kolkata, on Tuesday. — Parth Sanyal

Kolkata , July 20

RIDING on its maiden net profit of around Rs 100 crore, Haldia Petrochemicals Ltd (HPL) is roping in Mr Ratan Tata and Mr Jamshyd Godrej into its board. This is considered to be a first step towards the company's initial public offer (IPO).

Addressing a press conference, Mr Tarun Das, chairman of HPL, said that both Mr Tata and Mr Godrej had confirmed their participation as independent directors. They would join the board within the next two months. With their induction, the size of the HPL board would increase to 18 from 16.

For the year ended March 31, 2004, HPL's turnover increased by 45 per cent to Rs 4,298 crore. Earnings before depreciation, interest and tax (EBDIT) went up by 132 per cent to Rs 758 crore. The plant registered a 109 per cent capacity utilisation against 80 per cent in the previous fiscal.

As the audit of the accounts is yet to be completed, HPL preferred not to announce the precise net profit figure. Instead, Mr S.K. Bhowmik, CEO of HPL, said it would be "around Rs 100 crore." In the current year the company expects to grow at the rate of 45 per cent.

A corporate debt-restructuring (CDR) package has already been worked out for HPL which has had some effect on the company's results for 2003-04. "It reduced our interest burden on the rupee loan to the extent of Rs 118 crore," he said.

According to the CDR, the promoters are supposed to bring in Rs 600 crore of fresh equity within this year. Of this, The Chatterjee Group has agreed to infuse Rs 143 crore.

Of the remaining Rs 457 crore, Gas Authority of India Ltd (GAIL) was supposed to bring in Rs 332 crore and, initially, the deadline was fixed for March 31, 2004, which it failed to meet.

According to Mr Das, fresh discussion will start with GAIL from August 1, after the capital infusion of Rs 143 crore by Dr Purnendu Chatterjee. "Once that is over we will start working on the IPO," he said.

He said that preliminary discussions on the IPO took place at the board meeting. Though he preferred not to dilate on the subject, Dr Chatterjee clarified that the offer would be through the book-building route and would be over by December 31, 2004.

If GAIL failed to chip in with the equity, Mr Das said HPL would not look for a new partner. Neither would it raise the rest of the equity (Rs 457 crore) just through the IPO. "We are not considering that option at the moment. We will go step by step," Mr Das said.

Post-IPO and all the current capital infusions carried out by the company, the equity base of HPL will rise to Rs 2,000 crore. The debt:equity ratio will improve from 1:4.5 to 1:1.5.

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