MIRA
INFORM REPORT
|
Report Date : |
27.12.2013 |
IDENTIFICATION DETAILS
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Name : |
HINDALCO INDUSTRIES LIMITED |
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Registered
Office : |
Century Bhavan, 3rd Floor, Dr. Annie Besant Road, Worli,
Mumbai – 400 025, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
15.12.1958 |
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Com. Reg. No.: |
11-011238 |
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Capital
Investment / Paid-up Capital : |
Rs.1914.800 Millions |
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CIN No.: [Company Identification
No.] |
L27020MH1958PLC011238 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMI05060G |
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PAN No.: [Permanent Account No.] |
AAACH1201R |
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Legal Form : |
Public Limited
Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Aluminum
Products. |
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No. of Employees
: |
20000
(Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (74) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 1358895000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is flagship company of the “ADITYA BIRLA GROUP”, one of the
largest integrated aluminum manufacturer in India. It is a well established
and reputed company having excellent track record. Financial position of the company appears to be sound. Directors are
reported to be experienced and respectable businessmen. Over all fundamentals of the company appears to be strong and healthy. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. Company can be considered good for normal business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
Uptick in
agriculture and construction spread some cheer as the economy grew a
higher-than-expected 4.8 % in the three months through September. Manufacturing
rose an annual rate per cent during the quarter and mining fell by 0.4 %,
government data showed while farm output rose 46%.
India has emerged as
the most attractive investment destination, thanks to a relaxation in foreign
direct investment norms, says a report. India is followed by Brazil and China
in the ranking part of EY’s Capital Confidence Barometer report based on a
survey across 70 nations. The US, France and Japan have emerged as the top
three investors likely to invest in India.
India has been
ranked 83rd globally in terms of talent competitiveness of its human
capital. Switzerland, Singapore, Denmark, Sweden and Luxembourg are the
top five in the list of 103 nations compiled by INSEAD business school.
Tax rates for
companies in India are among the highest in the world and the number of
payments is also more than the global average putting the country at low, 158th
rank on the Paying Taxes. 2014 list by the World Bank and PWC. However, the
time taken for tax payments is relatively less in India which is rated ahead of
China and Japan.
1 billion smartphone
shipments in 2013, a 39.3 % growth over 2012. This was being driven by low cost
computing in emerging markets. By 2017, total smartphone shipments are expected
to approach 1.7 billion units, resulting in a compound annual growth rate of
18.4 % between 2013 and 2017, according to research from IDC.
20 % vacancy rate of
office space in Mumbai and Delhi in the third quarter, the highest in Asia
after Chengdu, in China. According to Cushman and Wakefield, six Indian cities
are among the 10 office markets with the worst vacancies.
Foreign banks will
not have to pay stamp duty and capital gains tax, if they convert their branch
operations into a wholly owned subsidiary, according to the Reserve Bank of
India.
The Reserve Bank of
India is planning to launch CPI – indexed bonds aimed to protecting the savings
of retail investors from the impact the price rise by December end.
Central Bureau of
Investigation has booked State Bank of India, Deputy Managing Director Shyamal
Acharya and others in a graft case related to distribution of a loan of over Rs
4000 mn. Gold and jewellery worth Rs 6.7 mn have been recovered from the
residence of Acharya.
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
Non-Convertible Debentures= AA+ |
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Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
07.08.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
Management non-cooperative
Tel. No.: 91-22-24308491 / 66626666
LOCATIONS
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Registered Office/ Marketing Head Office: |
Century Bhavan, 3rd
Floor, Dr. Annie Besant Road, Worli, Mumbai – 400 025, Maharashtra, India |
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Tel. No.: |
91-22-24308491 /
92 / 93 / 66626666 |
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Fax No.: |
91-22-24227586 /
24362516 |
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E-Mail : |
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Website : |
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Corporate
Office 1/ - Marketing Head Office
(Copper) : |
Aditya Birla Centre, III Floor, B Wing, S. K. Ahire Marg,
Worli, Mumbai – 400030, |
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Tel No.: |
91-22-66525000 / 24995000 |
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Fax No.: |
91-22-66525847 / 24995841 |
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Email : |
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Website: |
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Corporate
Office 2: |
Foil and Packaging Business, Kalwa Works, Thane
Belapur Road, Near Vitawa Village, Kalwa, Thane-400 605, Maharashtra, India |
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Tel. No.: |
91-22-25347151 |
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Fax No. : |
91-22-24227586 |
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Email : |
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Regional
Office – Aluminum : |
Ahura Centre, 1st
Floor, 82, Mahakali Caves Road, Mumbai – 400 093, Maharashtra, India Tel No.: 91-22-66917031 / 30 / 37 / 40 /00 Fax No.:91-22-66917070 Vandhana, 5th Floor ,11 Tolstoy Marg, New Delhi – 110 001, India Tel No.: 91-11-42200204 / 228 / 230 / 271 / 200 Fax No.:91-11-23721595 Jeevan Deep, 2nd Floor 1, Middleton Street Kolkata – 700 071, West Bengal, India Tel No.: 91-33-22809710 Fax No.:91-33-22886139 Industry House, 7th Floor, 45, Race Course Road, Bangalore – 560 001, Karnataka, India Tel No.:91-80-4041 6010 / 21 / 22 / 00 |
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Principal Office
and Works / Renusagar Power Division : |
District
Sonbhadra, P. O. Renukoot – 231 217, Mirzapur, Uttar Pradesh, India |
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Tel. No.: |
91-5446-252077-9/
272501-5 |
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Fax No.: |
91-5446-252107 /
252427/ 272382 |
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E-Mail : |
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Birla Copper
Division: |
P. O. Dahej,
Lakhigam, District Bharuch – 392 130, Gujarat, India |
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Tel. No.: |
91-2641-256004-06/251009 |
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Fax No.: |
91-2641-251002-3 |
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E-Mail : |
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Foil and Wheels Division: |
Village Khutli,
Khanvel, Silvassa – 396 230, |
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Tel. No.: |
91-260-2677021-4 |
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Fax No.: |
91-260-2677025 |
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Export Office: |
9/1, |
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Tel. No.: |
91-33-22480949 /
22200464 |
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Fax No.: |
91-33-22200214 |
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Email: |
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Factory : |
ALUMINIUM
AND POWER Renukoot
Plant P.O. Renukoot -231217, District Sonbhadra, Uttar Pradesh,
India Tel No.:
91-5446-252077-9 Fax No.:91-5446-252107 Renusagar
Power Division P. O. Renusagar, District Sonbhadra, Uttar Pradesh, India Tel No.:
91-5446-272502-5 Fax No.:
91-5446272382 Alupuram
Smelter Alupuram P.B. No. 30, Kalamassery – 683 104, District:
Ernakulam, Kerala, India Tel No.: 91-484-2532441 Fax No.:
91-484-2532468 Hirakud
Smelter Hirakud 768 016, District Sambalpur, Orissa,
India Tel No.:
91-663-2481307 Fax No.:91-663-2481356 Hirakud
Power Post Box No.12, Hirakud 768 016, District: Sambalpur,
Orissa Alupuram, India Tel No.: 91-663-2481408 Fax No.:
91-663-2481342 COPPER: Birla
Copper Division P.O. Dahej, Lakhigam Post, District. Bharuch – 392 130, Tel No.: 91-2641- 256004-06/ 251009 Fax No.:
91-2641- 251002-3 CHEMICALS: Muri
Alumina Post Chotamuri-835 101, District Ranchi,
India Tel No.: : 91-6522- 244396 Fax No.:
91-6522-244231 Village Yamanapur , Tel No.: 91-831-2472716 Fax No.:91-831-2472728 MINES Chandgad
Mines At Post: Chandgad – 416509, District: Kolhapur,
Maharashtra, India Tel/Fax: (02320) 213342 Durgmanwadi
Mines At Post Radhanagri, District: Kolhapur, Maharashtra – 416
212, India Tel No.:
91-2321-260036 Fax No.:
91-2321-260037 Lohardaga
Mines District: Lohardaga – 835 302, Jharkhand, India Tel No.:
91-6526-224446 Fax No.:
91-6526-224446 Talabira
Mines Talabira-1, Qrs. No. A6/1, Saraswati Vihar, P.O. Sankarma,
District Sambalpur, Orissa, India Tel No.:
91-663-2230573 SHEET,
FOIL, WHEEL, PACKAGING AND EXTRUSIONS Foils and Wheels Division, Village Khutli, Khanvel,
Silvassa-396230, U.T., India Tel No.: 91-260-2677021/4 Fax No.: 91-260-2677025 Belur
Sheet 39, Grand Trunk Road, Belurmath 711 202, District: Howrah,
West Bengal, India Tel No.: 91-33-26547210 Fax No.: 91-33-26549982 Taloja
Sheet Plot 2, MIDC Industrial Area, Taloja A.V., District:
Raigad, Navi Mumbai – 410 208, Maharashtra, India Tel No.
91-22-27412261/ 66292929 Fax No.: 91-22-27412430 Alupuram
Extrusions Alupuram, P.B. No.30, Kalamassery – 683 104, District:
Ernakulam, Kerala, India Tel No.:
91-484-2532441 Fax No.: 91-484- 2532468 Mouda
Unit Village Dahali, Tel No:
91-7115-660777/786 Kollur
Works Village- Kollur, Re Puram Mandal, Via Mutangi, Medak District,
Andhra Pradesh – 502 300, India Tel No::
91-8413- 234300/ 234204/05 Fax No.:
91-8455-288829 |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Kumar Mangalam Birla |
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Designation : |
Chairman |
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Address : |
16-A, IL-Palazzo, Little Gibbs Road, Mumbai – 400 006, Maharashtra,
India |
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Qualification : |
A.C.A, M.B.A. |
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Date of Birth : |
14.06.1967 |
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Date of Appointment : |
16.11.1992 |
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Other Directorship : |
·
Grasim Industries Limited ·
Aditya Birla Nuvo Limited ·
Birla Sunlife Asset Management Company Limited ·
Birla Sun Life Insurance Company Limited ·
Essel Mining and Industries Limited ·
Utrateach Cement Limited ·
Century Textiles and Industries Limited ·
Idea Cellular Limited ·
Pilani Investment and Industries Corporation
Limited |
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Name : |
Mr. Debnaranyan Bhattacharya |
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Designation : |
Managing Director |
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Qualification : |
B. E. (Chemicals), IIT |
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Date of Birth : |
13.09.1948 |
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Date of Appointment : |
30.04.2003 |
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Other Directorship : |
·
Pidilite Industries Limited ·
Mahan Coal Limited |
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Name : |
Mrs. Rajashree Birla |
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Designation : |
Non-Executive Director |
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Address : |
16-A, IL- Palazzo, Little Gibbs Road, Mumbai – 400 006, Maharashtra,
India |
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Date of Appointment : |
15.03.1996 |
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Name : |
Mr. Chaitan Manbhai Maniar |
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Designation : |
Non-Executive Director |
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Address : |
Garden House, 1st Floor, Dadyseth, 2nd Cross Lane, Chowpatty Band
Stand, Mumbai – 400 007, Maharashtra, India |
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Date of Appointment : |
08.03.1983 |
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Name : |
Mr. Madhukar Manilal Bhagat |
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Designation : |
Non Executive Directors |
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Name : |
Mr. Kailash Nath Bhandari |
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Designation : |
Non Executive Directors |
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Name : |
Mr. Askaran K. Agarwala |
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Designation : |
Non-Executive Director |
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Address : |
“Haveli”, Flat No.3, L.D. Ruparel Marg, Mumbai – 400 006, Maharashtra,
India |
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Qualification : |
B.Com, F.C.A, LLB |
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Date of Birth : |
01.07.1993 |
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Date of Appointment : |
11.09.1998 |
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Other Directorship : |
·
Aditya Birla Chemicals (India) Limited ·
Tanfac Industries Limited ·
Udyog Services Limited ·
Aditya Birla Insurance Brokers Limited ·
Aditya Birla Power Company Limited ·
Aditya Birla Health Services Limited |
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Name : |
Mr. Narendra Jamnadas Jhaveri |
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Designation : |
Non Executive Directors |
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Name : |
Mr. Ram Charan |
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Designation : |
Non Executive Directors |
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Name : |
Mr. Jagdish Khattar |
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Designation : |
Non Executive Directors |
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Qualification : |
BA (Hons), LLB |
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Date of Birth : |
18.12.1942 |
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Date of Appointment : |
09.05.2011 |
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Other Directorship : |
·
HDFC ERGO General
Insurance Company Limited ·
Steel Authority of
India Limited |
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Name : |
Mr. Meleveetil Damodaran |
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Designation : |
Non Executive Directors |
KEY EXECUTIVES
|
Name : |
Mr. Anil Malik |
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Designation : |
Company Secretary |
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Name : |
Mr. Praveen
Maheshwari |
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Designation : |
Chief Financial Officer |
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BUSINESS / UNIT HEAD: |
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Name : |
Mr. Dilip Gaur |
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Designation : |
Group Executive President, Copper |
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Name : |
Mr. Sachin Satpute |
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Designation : |
Chief Marketing
Officer, Aluminium |
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Name : |
Mr. Satish Mohan Bhatia |
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Designation : |
President (Foil and Packaging) |
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Name : |
Mr. Raghavendra Dhulkhed |
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Designation : |
Senior President (Operations) |
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Name : |
Mr. Sanjay Sehgal |
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Designation : |
President (Chemicals and International Trade) |
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Name : |
Mr. Dinesh Kumar
Kohly |
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Designation : |
Chief Operating Officer (Renukoot and Renusagar Units) |
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CORPORATE : |
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Name : |
Mr. Bharat
Bhushan Jha |
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Designation : |
Senior President
(Corporate Projects and Procurement) |
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Name : |
Mr. Vineet Kaul |
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Designation : |
Chief People Officer |
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NOVELIS INC |
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Name : |
Mr. Debnarayan
Bhattacharya |
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Designation : |
Vice Chairman |
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Name : |
Mr. Philip Martens |
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Designation : |
President and Chief Executive Officer |
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|
UTKAL ALUMINA INTERNATIONAL LIMITED |
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Name : |
Mr. Surya Kanta Mishra |
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Designation : |
Chief Executive Officer |
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ADITYA BIRLA MINERALS LIMITED |
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|
Name : |
Mr. Debnarayan Bhattacharya |
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Designation : |
Chairman |
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Name : |
Mr. Sunil Kulwal |
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Designation : |
Chief Executive Officer and MD |
SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Names of
Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of
Promoter and Promoter Group |
|
|
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|
2398696 |
0.13 |
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|
745082362 |
39.07 |
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|
16316130 |
0.86 |
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|
16316130 |
0.86 |
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|
763797188 |
40.05 |
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Total shareholding
of Promoter and Promoter Group (A) |
763797188 |
40.05 |
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(B) Public Shareholding |
|
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|
23334758 |
1.22 |
|
|
74507990 |
3.91 |
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|
519695 |
0.03 |
|
|
198989671 |
10.43 |
|
|
513311351 |
26.91 |
|
|
810663465 |
42.50 |
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|
|
|
|
|
114443685 |
6.00 |
|
|
|
|
|
|
159137694 |
8.34 |
|
|
10175857 |
0.53 |
|
|
49062368 |
2.57 |
|
|
10818266 |
0.57 |
|
|
2406850 |
0.13 |
|
|
32554920 |
1.71 |
|
|
2985717 |
0.16 |
|
|
296615 |
0.02 |
|
|
332819604 |
17.45 |
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Total Public
shareholding (B) |
1143483069 |
59.95 |
|
Total (A)+(B) |
1907280257 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
14542309 |
0.00 |
|
|
142760502 |
0.00 |
|
|
157302811 |
0.00 |
|
Total (A)+(B)+(C) |
2064583068 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Aluminium Products. |
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Products : |
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PRODUCTION STATUS [AS ON 31.03.2011]
|
Class of goods |
Installed Capacity [Qty] |
Actual Production [Qty] |
|
Aluminium Metal |
506400* |
537935 |
|
Rolled Products |
205000 |
199821# |
|
Extruded Products |
31000 |
35865@ |
|
Conductor Redraw Rods |
56400 |
94307$ |
|
Aluminium Foil |
40000 |
17698 |
|
Aluminium Wheel |
-- |
-- |
|
|
PCS |
PCS |
|
Hydrate and Alumina |
1500000 |
1352877 |
|
Electricity |
1109.200 MW |
9213 MU |
|
Electricity (Co-generation) |
248.8 MW |
1463 MU |
|
Continuous Cast Copper Rods (CCR) |
142200 |
144553 |
|
Copper cathodes |
500000 |
335598 |
|
Sulphuric Acid |
1670000 |
1097158 |
|
Phosphoric Acid |
180000 |
102167 |
|
DAP and complexes |
400000 |
219805 |
|
Gold |
15 |
6960 |
|
Silver |
150 |
45076 |
NOTE:
1.
* Installed capacity of Hirakud Smelter increased.
2.
# Includes 56 T (Previous Year 7 T) converted from
outside party, 4134 T (Previous year 3618 T) being production out of customers’
material and 23126 (Previous year 21461 T) transferred for captive consumption.
3.
@ Include Nil T (Previous year 1 T) converted from
outside party and 319 T (Previous year 67 T) transferred for captive
consumption.
4.
$ Include 13 T (Previous year Nil T) transferred
for captive consumption.
5.
Alumina includes 1059478 T (1053571 T) transferred
for own consumption/ further processing.
6.
Production of CCR, Copper cathodes, Sulphuric acid,
and Phosphoric acid include 533 T, 142926 T, 318495 T and 102,167 T (Previous
year 1182 T, 148424 T, 251654 T and 85187 T) respectively which have been
captively consumed / to be consumed. Copper cathodes also include 10707 T
(Previous Year Nil T) being production out of customers’ material.
GENERAL INFORMATION
|
No. of Employees : |
20000
(Approximately) |
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Bankers : |
· UCO Bank, Mumbai, Maharashtra, India · State Bank of India, Mumbai, Maharashtra, India · Allahabad Bank, Mumbai, Maharashtra, India · American Express Bank Limited, Mumbai, Maharashtra, India · Bank of America, Mumbai, Maharashtra, India · Citibank N. A., Mumbai, Maharashtra, India · ABN Amro Bank N.V., Mumbai, Maharashtra, India ·
Union Bank of India, Mumbai, Maharashtra, India ·
IDBI Bank Limited, Mumbai, Maharashtra, India · Hongkong and Shanghai Banking Corporation Limited · Standard Chartered Grindlays Bank, Plc, 19, N. S. Road, Kolkata, West Bengal, India |
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Facilities : |
LONG TERM
BORROWINGS |
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NOTE: (a)
Debentures comprise of following:
All the above Debentures are secured by all the movable both present
and future (except movable assets of Mahan Aluminium Project, Aditya
Aluminium Project, Kalwa plant and Current Assets) and certain immovable
properties of the Company. (b) Term Loans from
Banks of Rs.51429.900 Millions (as at March 31, 2012) have been prepaid by
the Company on June 30, 2012. (c) Term Loans from
Banks of Rs.72270.500 Millions (Previous year Rs.58907.700Millions) and from
Other Parties of Rs.929.500 Millions (Previous year Rs.783.500 Millions) are secured by
a first ranking charge/mortgage/security interest in respect of all the
movable assets (except Current Assets) and all the immovable properties of
Mahan Aluminium Project, both present and future, and a second ranking charge/mortgage/security
interest, in favour of the Security Trustee, in respect of the Current
Assets. However, security creation is pending on 1,086.15 hectres of land due
to non availability of approval from the appropriate authority. Above loans carry interest at the State Bank of India’s base rate plus
1.75% and are repayable in 42 quarterly instalments commencing from September
30, 2013 and ending on December 31, 2023. The repayment in each financial
year in percentage is 4.25, 7.75, 9, 9, 10, 10, 10, 10, 10.75, 11 and 8.25 of
the loan amount. Post Commercial Operation Date of the Mahan Aluminium
Project, the Company will have an option to prepay all or any portion of this
Loan, without payment of Prepayment Penalty within 15 (fifteen) days after any
annual Margin Reset Date. (d) Term Loans from
Banks of Rs.67962.400 Millions (Previous year ` Nil) and from Other Parties
of Rs.1437.500 Millions (Previous year ` Nil) are
secured by a first ranking charge/mortgage/security interest in favour of the Security Trustee, in respect of all the movable and immovable
properties both present and future and asecond charge in respect of all the
inventory related to Aditya Aluminium Project. However, security on 2,510.61
acres land is pending due to non availability of approval from the
appropriate authority. Above loans carries interest at the State Bank of India’s base rate
plus 1.25% and are repayable in 40quarterly instalments commencing from June
1, 2015 and ending on March 1, 2025. The repayment in each financial year in
percentage is 2.32, 4.20, 6.20, 8.60, 9, 11, 12.50, 15, 14 and 17.18 of the
loan amount. The Company will have an option to prepay all or any portion of this
Loan, without payment of Prepayment Penalty within 30 (Thirty) days after any
annual Interest Reset Date. (e) Term Loans from
Other Parties include Foreign Currency Term Loans from Export Development
Canada (EDC) of USD 100 million (Previous year USD Nil) are secured by a
first charge on all movable assets of the Mahan Aluminium Project and a
second charge on the current assets of the Company, both present and future. Above loan carry interest at the LIBOR plus 1.25% and are repayable in
43 quarterly installments commencing from June 30, 2013 and ending on
December 31, 2023. The repayment in each financial year in percentages 9.30,
9.30, 9.30, 9.30, 9.30, 9.30. 9.30. 9.30, 9.30, 9.30 and 7 of the loan
amount. Subject to the prevailing RBI ECB Regulations, the Company may prepay
all or any part of the Loan at any time. (f) Deferred
Payment Liabilities represent sales tax deferral which is payable in yearly installment
by FY 2018. SHORT TERM
BORROWINGS
(a) Cash Credit,
Export Credit etc. granted under the Consortium Lending Arrangement are
secured by a first pari-passu charge by way of hypothecation of entire stocks
of raw materials, work-in-process, finished goods, consumable stores and
spares and also book debts pertaining to the Company’s Aluminium business. Working
Capital Loan of State Bank of India for the Copper business is secured by a first
pari-passu charge by way of hypothecation of stocks of raw materials,
work-in-process, finished goods and consumable stores and spares of Copper
business, both present and future. (b) Payable under
Trade Financing Arrangements comprise of unsecured credit availed from Banks
for payment to suppliers for raw materials purchased by the Company. The
arrangements are interest-bearing and are normally payable within 180 days. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Singhi and Company Chartered Accountants |
|
|
|
|
Cost Auditors : |
|
|
Name : |
R. Nanabhoy and Company Cost Accountant |
|
Address : |
Mumbai, Maharashtra India |
|
|
|
|
Joint Ventures : |
· Mahan Coal Limited · Hydromine Global Minerals (GMBH) Limited |
|
|
|
|
Trust of the Company : |
·
Trident Trust |
|
|
|
|
Subsidiaries : |
· Hindalco Guinea SARL · Minerals and Minerals Limited · Aditya Birla Chemicals (India) Limited · Utkal Alumina International Limited · Suvas Holdings Limited · Renukeshwar Investments and Finance Limited · Renuka Investments and Finance Limited · Dahej Harbour and Infrastructure Limited · Lucknow Finance Company Limited · Hindalco-Almex Aerospace Limited · HAAL USA Inc. (dissovled w.e.f. 23rd April 2012) · Tubed Coal Mines Limited · East Coast Bauxite Mining Company Private Limited · Mauda Energy Limited · Birla Resources Pty Limited · Aditya Birla Minerals Limited · Birla Maroochydore Pty Limited · Birla Nifty Pty Limited · Birla Mt. Gordon Pty Limited · AV Minerals (Netherlands) B.V. · AV Metals Inc. · Novelis MEA Limited (Dubai) · Novelis Inc. · Albrasilis - Aluminio do Brazil Industria e Comercia Ltda · Novelis do Brasil Ltda. · 4260848 Canada Inc. · 4260856 Canada Inc. · Novelis Cast House Technology Limited · Novelis No. 1 Limited Partnership · Novelis Sheet Ingot GmbH · Novelis Lamines France SAS · Novelis PAE SAS · Novelis Aluminum Beteiligungs GmbH · Novelis Deutschland GmbH · Novelis Aluminum Holding Company · Novelis Italia SpA · Novelis (Shanghai) Aluminum Trading Company · Aluminum Company of Malaysia Berhad · Alcom Nikkei Specialty Coatings Sdn Berhad · Al Dotcom Sdn Berhad # · Novelis (India) Infotech Limited · Novelis de Mexico SA de CV · Novelis Korea Limited · Novelis AG · Novelis Switzerland SA · Novelis Europe Holdings Limited · Novelis UK Limited · Aluminum Upstream Holdings LLC (Delaware) · Eurofoil, Inc. (USA) (New York) · Logan Aluminum Inc. (Delaware) · Novelis Corporation (Texas) · Novelis Madeira, Unipessoal, Limited · Novelis Services Limited · Novelis Brand LLC (Delaware) · Novelis PAE Corp (Delaware) · Novelis South America Holdings LLC · Novelis (China) Aluminum Products Company Limited · 8018227 Canada Inc. · 8018243 Canada Limited · Novelis Acquisitions LLC (Delaware) · Novelis North America Holdings Inc. (Delaware) · Novelis Delaware LLC (Delaware) · Novelis Vietnam Company Limited |
|
|
|
|
Associates : |
· Aditya Birla Science and Technology Company Limited · Idea Cellular Limited · Aluminium Norf GmbH · Consorcio Candonga · MiniMRF LLC, Delaware · Deutsche Aluminium Verpackung Recycling GmbH · France Aluminium Recyclage SA |
CAPITAL STRUCTURE
As on: 10.09.2013
Authorised Capital : Rs. 2150.000
Millions
Issued, Subscribed & Paid-up Capital : Rs. 2064.583 Millions
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2100000000 |
Equity Shares |
Rs. 1/- each |
Rs.2100.000 Millions |
|
25000000 |
Redeemable Cumulative Preference Shares |
Rs. 2/- each |
Rs.50.000 Million |
|
|
|
|
|
|
|
|
|
Rs.2150.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1915136714 |
Equity Shares |
Rs. 10/- each |
Rs.1915.137 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1915129317 |
Equity Shares |
Rs. 10/- each |
Rs.1915.100 Millions |
|
546249 |
Less: Forfeited Shares |
|
Rs.0.500 Million |
|
|
Add: Forfeited Shares |
|
Rs.0.200 Million |
|
|
|
|
|
|
|
|
|
Rs.1915.800
Millions |
# Issued Equity Share Capital includes 7,397
Equity Shares (Previous year 7,397 Equity Shares) of Rs.1/- each
issued on Rights basis kept in abeyance due to
legal case pending.
(a) Reconciliation of shares outstanding at the beginning and at the end
of the reporting period:
|
Equity Shares |
Number
of Shares |
|
Shares outstanding at the beginning of the year |
1914542308 |
|
Shares allotted pursuant to exercise of ESOP |
40760 |
|
Shares
outstanding at the end of the year |
1914583068 |
(b) Rights, preferences and restrictions attached to Equity Shares:
The Company has one class of equity shares
having a par value of ` 1/- per share. Each shareholder is eligible for one
vote per share held. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing Annual General Meeting, except
in case of interim dividend. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their shareholding.
(c) Details of shareholders
holding more than 5% equity Shares in the Company on reporting date:
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
IGH Holdings Private Limited |
228963487 |
11.96 |
|
Turquoise Investment and Finance Limited |
99012468 |
5.17 |
|
Morgan Guaranty Trust Company of New York
(represents GDRs) |
159663688 |
8.34 |
|
Life Insurance Corporation of India and
its Associates |
209341326 |
10.93 |
|
|
|
|
|
Total |
696980969 |
36.40 |
(d) Shares reserved for issue under options:
The Company has reserved equity shares for
issue against warrants allotted on preferential basis to the Promoter Group.
The Company has also reserved equity shares for issue under the Employee Stock Option
Scheme.
“Money received against Share Warrants” share
warrants allotted to the Promoter Group and Note No.40 on “Share Based Payment”
for details of Employee Stock Option Scheme.
Money received against Share Warrants:
The Company has allotted 150,000,000 warrants
on a preferential basis to the Promoter Group on 22nd March, 2012 entitling
them to apply for and obtain allotment of one equity share of ` 1/- each fully
paid-up at a price of ` 144.35 per share against each such warrant at any time
after the date of allotment but on or before the expiry of 18 months from the
date of allotment in one or more tranches. The Company has received Rs.5413.100
Millions being 25% against these warrants. The entire amount so received has
been utilised for various Greenfield and Brownfield projects expenditure.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
1914.800 |
1914.800 |
|
(b) Reserves & Surplus |
|
332396.000 |
312996.800 |
|
(c) Money
received against share warrants |
|
5413.100 |
5413.100 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
|
339723.900 |
320324.700 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
204430.500 |
111151.300 |
|
(b) Deferred tax liabilities (Net) |
|
11911.400 |
12245.600 |
|
(c) Other long term liabilities |
|
9742.800 |
9531.000 |
|
(d) long-term provisions |
|
3009.400 |
2873.200 |
|
Total Non-current Liabilities (3) |
|
229094.100 |
135801.100 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
37017.200 |
34567.800 |
|
(b) Trade payables |
|
30515.200 |
46597.700 |
|
(c) Other current
liabilities |
|
19240.900 |
9986.100 |
|
(d) Short-term provisions |
|
10594.300 |
9198.800 |
|
Total Current Liabilities (4) |
|
97367.600 |
100350.400 |
|
|
|
|
|
|
TOTAL |
|
666185.600 |
556476.200 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
70710.000 |
71259.500 |
|
(ii) Intangible Assets |
|
266.500 |
242.500 |
|
(iii) Capital
work-in-progress |
|
236051.100 |
162567.000 |
|
(iv)
Intangible assets under development |
|
0.100 |
2.400 |
|
(b) Non-current Investments |
|
140501.700 |
135037.000 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
16810.800 |
22495.300 |
|
(e) Other Non-current assets |
|
345.100 |
78.100 |
|
Total Non-Current Assets |
|
464685.300 |
391681.800 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
64319.600 |
45834.000 |
|
(b) Inventories |
|
77026.100 |
77428.600 |
|
(c) Trade receivables |
|
15150.400 |
14274.500 |
|
(d) Cash and cash
equivalents |
|
14978.200 |
7223.000 |
|
(e) Short-term loans and
advances |
|
22724.200 |
16476.500 |
|
(f) Other current assets |
|
7301.800 |
3557.800 |
|
Total Current Assets |
|
201500.300 |
164794.400 |
|
|
|
|
|
|
TOTAL |
|
666185.600 |
556476.200 |
|
SOURCES OF FUNDS |
|
|
31.03.2011 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
1914.600 |
|
|
2] Money Received Against Share Warrants |
|
|
0.000 |
|
|
3] Reserves & Surplus |
|
|
295086.400 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
5] Employee Stock Exchange |
|
|
0.000 |
|
|
NETWORTH |
|
|
297001.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
51703.100 |
|
|
2] Unsecured Loans |
|
|
38675.800 |
|
|
TOTAL BORROWING |
|
|
90378.900 |
|
|
DEFERRED TAX LIABILITIES |
|
|
12874.900 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
400254.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
75843.800 |
|
|
Capital work-in-progress |
|
|
60304.100 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
182467.500 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
Other Non Current Assets |
|
|
1.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
76514.000
|
|
|
Sundry Debtors |
|
|
12554.900
|
|
|
Cash & Bank Balances |
|
|
2333.900
|
|
|
Other Current Assets |
|
|
2470.800
|
|
|
Loans & Advances |
|
|
52873.400
|
|
Total
Current Assets |
|
|
146747.000 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
40829.500
|
|
|
Other Current Liabilities |
|
|
13444.100
|
|
|
Provisions |
|
|
10835.000
|
|
Total
Current Liabilities |
|
|
65108.600 |
|
|
Net Current Assets |
|
|
81638.400
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
400254.800 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
260569.300 |
265967.800 |
238592.100 |
|
|
|
Other Income |
9830.900 |
6157.900 |
3474.900 |
|
|
|
TOTAL (A) |
270400.200 |
272125.700 |
242067.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of Stock-in-Trade |
3.800 |
2059.800 |
5222.200 |
|
|
|
Cost of Raw Materials Consumed |
171365.100 |
178430.800 |
155309.400 |
|
|
|
Changes in Inventories |
1279.400 |
(4073.100) |
(3946.700) |
|
|
|
Employee Benefits Expenses |
12008.000 |
11133.500 |
10403.900 |
|
|
|
Power and Fuel |
30730.400 |
28706.700 |
22214.800 |
|
|
|
Impairment Loss/(Reversal) (Net) |
172.500 |
0.000 |
0.000 |
|
|
|
Other Expenses |
23145.400 |
18662.500 |
17841.600 |
|
|
|
TOTAL (B) |
238704.600 |
234920.200 |
207045.200 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
31695.600 |
37205.500 |
35021.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
4359.800 |
2936.300 |
2199.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
27335.800 |
34269.200 |
32822.200 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION (F) |
6869.500 |
6899.700 |
6874.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
20466.300 |
27369.500 |
25947.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
3474.300 |
4997.500 |
4578.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
16992.000 |
22372.000 |
21369.200 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4000.000 |
3500.000 |
3000.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Debenture Redemption Reserve |
1500.000 |
0.000 |
0.000 |
|
|
|
Transfer to General Reserve |
8994.800 |
18520.300 |
17531.600 |
|
|
|
Proposed Dividend on Equity Shares |
2680.500 |
2967.600 |
2871.700 |
|
|
|
Tax on Proposed Dividend |
316.700 |
384.100 |
465.900 |
|
|
BALANCE CARRIED
TO THE B/S |
7500.000 |
4000.000 |
3500.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Commission Earnings |
75715.500 |
78566.000 |
70960.000 |
|
|
|
Other Income |
7.500 |
0.400 |
11.400 |
|
|
TOTAL EARNINGS |
75723.000 |
78566.400 |
70971.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
160752.500 |
150812.900 |
143931.800 |
|
|
|
Coal and Fuel |
4011.900 |
2590.300 |
1787.600 |
|
|
|
Stores and Spares |
724.300 |
896.200 |
490.200 |
|
|
|
Capital Goods |
17738.300 |
13002.500 |
9006.200 |
|
|
|
Trading Goods |
0.000 |
2047.000 |
3966.400 |
|
|
TOTAL IMPORTS |
183227.000 |
169348.900 |
159182.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
8.88 |
11.69 |
11.17 |
|
|
|
Diluted |
8.87 |
11.68 |
NA |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total
Income |
(%) |
6.28
|
8.22 |
8.83 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.85
|
10.29 |
10.88 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.51
|
11.58 |
11.66 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.09 |
0.09 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.71
|
0.45 |
0.30 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.07
|
1.64 |
2.25 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS:
|
CASE DETAILS Bench: - Bombay Presentation
Date:- 18/04/2013
Bench: - SINGLE Status: - Pre-Admission Category:- ARBITRATION
APPLICATIONS Next Date: - 10/01/2013
Stage:- Arbap
For4 Hearing and Final Disposal U/S 11 of Arb. Act. Coram:- Hon’ble Shri Justice R.D Dhanuka Last Date: - 13/12/2013 Stage:-
Arbap For4 Hearing and Final Disposal U/S 11 of Arb. Act. Last Coram:- Hon’ble Shri Justice R.D Dhanuka Act:- Arbitration and Conciliation Act 1996 Under Section:- 11 |
BUSINESS OVERVIEW:
Financial Year 13 indeed was one of the toughest years for aluminium industry
in many ways, especially for the Indian aluminium industry. Globally, aluminium
prices continued to remain depressed; overcapacity and inventory overhang added
to the weak sentiment for the commodities. If during the first half European
sovereign debt issue continued to haunt the commodities, in the second half, it
was the impending slowdown in China that put a lid on any price recovery. The
emerging markets that were the torch bearer of Global recovery post 2009 have
witnessed fluctuating fortunes and many have been plagued with issues arising
out of uncertainties around sustainability of growth, rising inflation and
political uncertainty. The emerging markets in the recent past have
underperformed developed markets. For the Indian producers the situation was
even more challenging. If declining GDP growth, slowdown in manufacturing
sector and power sector impacted the demand in a low pricing (LME) scenario,
the cost pressures continued, primarily driven by high energy prices. While the
prices of crude and its derivatives continued to remain high globally, depreciating
rupee resulted in an additional burden on the Indian consumers. Coal prices
continued to increase in India, even as the Global coal prices cooled off.
Against this external backdrop, The Company also witnessed several one-off
adversities that tested the mettle of the Company. Renukoot and Hirakud smelters
experienced production outages due to varied reasons, Muri faced an unprecedented
water scarcity, Dahej copper smelter had to undertake an extended shutdown, Novelis
lost production in the 3rd quarter due to the issues experienced during the
roll out of new ERP at two units.
Despite all this, the Company has managed to deliver a solid
performance.
BUSINESS
HIGHLIGHTS:
·
FY 13 was a major stepping stone in subject long term
strategic path. The year brought subject on the verge of commissioning of its
Greenfield projects. These projects would redefine and enhance the cost
competitiveness which will ensure the business' long term sustainability. Utkal
and Mahan have achieved significant milestones and commissioning activities
have started at these two projects.
·
A unique strategy to catapult Indian aluminium market
to the next level is put in place and soon Hindalco shall be producing can body
stock and ultra thin gauge foils from the facilities in Hirakud and Mouda
respectively. This downstream strategy would not only enhance the product
portfolio but is also expected to re-define the aluminium usage in India.
·
Significant capex was also incurred in Novelis to
capture the growth in other emerging markets and product portfolios across the
globe. This will ensure the Company's global leadership in FRP (flat rolled
products) space and enhance the profitability.
·
Novelis has also made significant strides to
strengthen its recycling capabilities which will help improve the cost
structure and enhance competitiveness and profitability.
·
Hindalco's consolidated revenue stood at Rs.801930
Millions as compared with Rs.808210 Millions in FY 12.
·
Profit before depreciation, interest and taxes stood
at Rs.88490 Millions as compared with Rs.89670 Millions in FY12. This was a
solid performance against the backdrop of various setbacks and macroeconomic
challenges.
·
Net profit attributable to the shareholders for the
year stood at Rs.30270 Millions as compared with Rs.33970 Millions in FY 12.
·
The decline in profit is primarily due to lower
aluminium LME realisations, sustained cost pressures, certain one offs that
afflicted both Hindalco and Novelis and weakness in demand in certain global
geographies following macroeconomic headwinds.
·
Of the total annual revenue of Rs.801930 Millions, Aluminium
Business contributed Rs.621910 Millions, vs. Rs.620590 Millions in the last year.
Aluminium EBIT for FY13 was Rs.43880 Millions -broadly at FY12 levels.
·
Copper business delivered a creditable performance
against the backdrop of adverse macroeconomic conditions and one timers. This
performance was achieved on the back of strong operating efficiencies, enhanced
product mix, and focused value creation through waste-to-wealth initiatives and
higher co-product margins.
·
Copper revenue at Rs.175180 Millions, was lower than
Rs.183640 Millions generated in FY12. This decline was mainly on account of
lower realisation resulting from lower LME. The copper EBIT for the year was
Rs.7400 Millions as compared with Rs.11190 Millions in FY 12.
·
The Company continued with further financing
initiatives to progress on the charted growth path.
Ø
The Company achieved the financial closure of Aditya
aluminium project this year. A common rupee loan agreement for Rs.98960
Millions was signed by the Company on 17th September, 2012 with a group of 28
banks/financial institutions.
Ø
The Company raised Rs.60000 Millions through secured
non convertible debentures, the single largest issuance by a private corporate
in India in recent times at a very attractive pricing in a deal that was widely
termed as market reviving deal. These debentures are listed on the wholesale
debt market segment of National Stock Exchange.
Ø
As a part of the overall financial closure for the
project, The Company raised USD 100 million finance from Export Development
Canada for its Mahan Aluminium Project.
BUSINESS
PERFORMANCE REVIEW:
Aluminium Business
Industry Review
Global economy has been trudging along in the last one year in view of several macro economic uncertainities and risks. Some of the impending risks such as the Euro region break up and sharp US contraction seem to have been averted for now. Encouraging growth in the US and liquidity boosting policies by certain central banks have enabled the global economy to grow around 3.2% in 2012.
However, commodities are still languishing given the declining growth in China that hit a 13 year low, slowdown in Europe and lacklustre growth in other emerging markets.
The fact that commodity prices are ruled by sentiments more than pure
demand - supply dynamics, in an era where commodities have evolved as an important
asset class, too had a major bearing on the commodity prices.
Repeated episodes of global risk aversion and relatively high energy
costs cast a shadow on the metals and mining businesses. Many Mergers &
Acquisitions went sour as global players found it difficult to cope with the
challenging macroeconomic environment. In 2012 itself the write downs on
acquisitions exceeded USD 50 Bn. In India, the growth rate slowed down as
rising inflation and widening current account deficit constrained the monetary
policy. Uncertain regulatory environment too impacted the growth as investment
appetite declined.
OPERATIONAL
REVIEW:
Against this backdrop, The Company’s aluminium business had an operational performance that was truly creditable and indeed superior to most global peers.
OUTLOOK:
Global economic conditions have somewhat improved during the past six months. The Policymakers in developed countries have defused two of the biggest short-term risks to global activity at least for the moment - the Threat of the euro zone breakup and a sharp fiscal contraction in the United States. Financial stability has improved, according to the IMF’s latest World Economic Outlook (WEO). The report forecasts real global GDP growth of 3.3% on an annual average basis in 2013.
Long term outlook for aluminium continues to remain strong with Global aluminium demand expected to increase at a CAGR of 6% over next five years. China will continue to be the torchbearer of this demand increase, with expected growth of 9% till 2020, taking its consumption to almost 37 Mn tonnes. This growth rate, though strong, pales in comparison with the stupendous rate at which Chinese aluminium consumption has grown over the last decade. Infrastructure investment, especially power sector is expected to lead the growth as China rebalances its economy and increases its thrust on domestic consumption.
Other emerging markets too are expected to grow strongly, with Indian
demand growth expected to be in double digits. The Indian aluminium consumption
prospects remain strong with an expected demand pull from the power sector.
India’s demand for housing, retail and office space is expected to rise rapidly
as the urbanisation ratio is set to increase from 31% in 2011 to 40% by 2030
with an estimated 610 million people living in the cities by 2030.
In the developed world, the demand will mostly continue to be consumer
driven. US demand is expected to be robust over the short term with auto sector
growing strongly and some recovery seen in the housing and construction
sectors. The transportation sector is expected to display the strongest growth,
driven by higher vehicle production and increased substitution of steel by
aluminium as vehicle light weighting gathers pace. This will lead to higher
demand for auto body sheet throughout the forecast period.
The outlook for Europe is again not too bright having been plagued with
several macro-economic issues. In the mature Japanese market, demand will
remain relatively static, but the falling Yen should help keep Japanese
manufacturing exports competitive.
The supply is expected to remain strong as several producers continued
to produce despite low LME. High physical premiums too worked as an incentive
to continue production. Global Aluminium production is expected to grow at a
rate matching the demand growth over the next five years. Bulkof production
increase will come from China and Middle East. Production from both these
regions is expected to grow at around 8-9%.
In the recent past, there have been some capacity curtailments but
overall production continued to increase, especially in China. New Chinese capacities
in the North West/Western China are expected to come on stream over next few
years.
An
estimated 10 Mn tonnes capacity is getting added in interior China while some
of the high cost capacities in the eastern China are expected to close down.
While many of these closures are logical, the timing is uncertain due to
subsidies from provincial government. In China, smelters will be challenged by
the issues in sourcing alumina / bauxite, especially considering the recent restrictions
on bauxite export from Indonesia and logistic
challenges/cost inflation in transportation of bauxite/alumina to the interior
China.
BUSINESS OUTLOOK:
Over the years, The Company has successfully demonstrated benefits of an integrated approach with low cost upstream operations and significant abilities and reach in the downstream business. The robustness of Novelis' de-risked business model and focused approach to leverage the dominance in its chosen product segments has yielded desired outcome in challenging times.
Hindalco's aggressive Greenfield expansion programme is on the verge of delivering, despite tough ground conditions at its project locations. Once these projects stabilise fully, they will ensure long term sustainability of the Company built on a sound strategy; thus yielding superior returns and value addition.
GREENFIELD PROJECTS:
Greenfield Projects have made significant progress during the year. These projects, with their vertical integration and logistical advantages, shall enhance the cost competitiveness of aluminium business and will establish it as the 'Last Man Standing'.
COPPER BUSINESS INDUSTRY REVIEW:
In 2012,world refined consumption was static at 19.7Mt. Refined consumption grew in Asia, Middle East, North America and Latin America last year, but declined in Europe, Africa and Oceania. The main reason for stagnation in 2012 was a 2.2% year-on-year fall in consumption in the second quarter, which is usually the strongest in the year, as growth slowed abruptly in China. Despite this sharp slowdown in 2012, Chinese demand increased at around 5%, accounting for around 42% of Global copper demand.
In the USA financial fears had weighed on demand in the latter part of 2012, although 2013 seems to have started on a firmer footing. Continued improvement in key end use sectors is also expected to propel demand through the balance of the year. The construction market has been a focus of attention for some time following stellar growth in housing starts and this now seems to be feeding through into consumption of cathode.
European consumption declined by almost 7% as
industrial growth dropped sharply amidst the fears of Euro breakdown. The
demand in Japan, the other large consumer, remained stagnant.
BUSINESS PERFORMANCE:
Copper business got impacted due to plant shutdowns in the first half that resulted in decline in production. The output for the year at 314 KT was 5% lower than the previous year. Despite this, the endeavour to maximise VAP production resulted in higher volumes of CCR. The TC/RC for the year was marginally better, though co-product prices were significantly lower as industrial growth slowed down.
For custom smelters like The Company, copper prices are just a pass through and the margins are largely determined by TC/RC and other value drivers, viz. co-products. This year, while higher TC/RC were supportive, weak co-product prices and high input costs along with plant shutdowns negated the impact of better TC/RC. With improved product and market mix, and better operating efficiencies, copper business managed to deliver a robust performance. The EBIT for the year stood at Rs.7680 Millions as compared to Rs.8020 Millions in the previous year.
OUTLOOK:
In the short-term, the pace of copper supply growth relative to demand is expected to keep the market in surplus till 2017. Industry forecasts expect growth in refined copper consumption to be 4.9% in 2013, driven largely by China and North America. Smelter capacity is expected to continue growing with a CAGR of 5.8% p.a. till 2016.
On account of the market surplus and risk averse macroeconomic environment, copper prices are expected to remain subdued over next 1-2 years. This may lead to delays and/or deferrals in those projects that are either in construction or due to come on line over the coming years. Overall mine production capacity is forecast to rise from 16.2Mt in 2011 to 21.3Mt by 2015, an increase of 32%. Beyond 2015, mine production may be subdued due to reserve depletion.
Long term TC/RC for 2013 is around 10% better than in 2012. However, spot TC/RC are expected to remain volatile depending on the news flow.
Copper demand globally is expected to be little subdued and so are the prices. Over the period 2016 to 2018, projected deficits as a result of the slower pace of production growth should see prices recovering.
However, The Company's business which is predominantly converter business is largely insulated from copper prices. Better TC/RC due to surplus of mine metal, recovery in the Indian economy and manufacturing sector augurs well for the business. A weak rupee will also support the performance.
FINANCIAL REVIEW AND ANALYSIS:
·
Hindalco's consolidated revenue stood at Rs.801930
Millions as compared with Rs.808210 Millions in FY 12. Profit before depreciation,
interest and taxes stood at Rs.88490 Millions as compared with Rs.89670
Millions in FY12. This decline was only marginal against the backdrop of
significant challenges faced by The company such as lower aluminium LME
realisations, strong cost pressures, certain one offs that afflicted both
Hindalco and Novelis; and weakness in demand in certain geographies following
macroeconomic headwinds.
·
Standalone revenue for the year was stable at Rs.260570 Millions.
Profit before interest and depreciation was Rs.31870 Millions vs. Rs.37210
Millions in FY12.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10435421 |
25/06/2013 |
15,000,000,000.00 |
SBICAP
TRUSTEE COMPANY LIMITED |
202
MAKER TOWER "E" CUFFE PARADE, COLABA, MUMBAI – 400 005, |
B79008140 |
|
2 |
10390692 |
07/12/2012 |
5,500,000,000.00 |
SBICAP
TRUSTEE COMPANY LIMITED |
202,
MAKER TOWER, E CUFFE PARADE, COLABA, MUMBAI – 400 005, |
B63619084 |
|
3 |
10390853 |
23/11/2012 |
98,960,000,000.00 |
IDBI
TRUSTEESHIP SERVICES LIMITED |
ASIAN
BUILDING,GROUND FLOOR, 17, R.K. KAMANI MARG |
B63687578 |
|
4 |
10376091 |
14/05/2013
* |
15,000,000,000.00 |
IDBI
TRUSTEESHIP SERVICES LIMITED |
ASIAN
BUILDING, GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI – 400 001,
MAHARASHTRA, INDIA |
B78583887 |
|
5 |
10372704 |
14/05/2013
* |
15,000,000,000.00 |
IDBI
TRUSTEESHIP SERVICES LIMITED |
ASIAN
BUILDING, GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI – 400 001,
MAHARASHTRA, INDIA |
B78582681 |
|
6 |
10360308 |
14/05/2013
* |
30,000,000,000.00 |
IDBI
TRUSTEESHIP SERVICES LIMITED |
ASIAN
BUILDING, GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI – 400 001,
MAHARASHTRA, INDIA |
B78581881 |
|
7 |
10296689 |
08/11/2012
* |
78,750,000,000.00 |
SBICAP
TRUSTEE COMPANY LIMITED |
202,
MAKER TOWER, 'E' CUFFE PARADE, COLABA, MUMBAI – 400 005, MAHARASHTRA, INDIA |
B62557798 |
|
8 |
80059220 |
09/12/2004 |
1,000,000,000.00 |
Bank
of Maharashtra |
LOK
MANGAL, 1501, SHIVAJI NAGAR, PUNE – 411 005, MAHARASHTRA, INDIA |
- |
|
9 |
90218583 |
30/09/2004 |
4,900,000,000.00 |
STATE
BANK OF INDIA |
CORPORATE
ACCOUNTS GROUPS BRANCH, VOLTAS HOUSE, 2 3, J. N. HERDIA MARG, BALLARD ESTAT,
MUMBAI – 400 001, MAHARASHTRA, INDIA |
- |
|
10 |
90218478 |
24/12/2003
* |
1,000,000,000.00 |
STATE
BANK OF INDIA |
SECURITIES
AND SERVICES DIVISION, MUMJBAI MAIN BRANCH, STATE BANK BUILDING, MUMBAI
SAMACHAR MARG, BOMBAY – 400 023, MAHARASHTRA, INDIA |
- |
* Date of charge modification
FIXED ASSETS:
·
Mining Rights
·
Leasehold Land
·
Freehold Land
·
Buildings
·
Plant and Machinery
·
Vehicles and Aircraft
·
Furniture and Fittings
·
Railway Sidings
·
Live Stock
·
Computer Software
·
Technological Licenses
STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND SIX
MONTHS ENDED 30TH SEPTEMBER 2013
(Rs. In Millions)
|
Particulars |
30.09.2013 (Unaudited) |
30.06.2013 (Unaudited) |
30.09.2013 (Unaudited) |
|
|
|
|
|
|
1.
Income form operations |
|
|
|
|
a) Net sales/ Income from operation (net of excise duty) |
62455.600 |
57666.900 |
120122.500 |
|
b) Other operating income |
592.900 |
712.400 |
1305.300 |
|
Total
income from Operations(net) |
63048.500 |
58379.3 |
121427.800 |
|
2.Expenditure |
|
|
|
|
a) Cost of material consumed |
50427.200 |
29934.800 |
80362.000 |
|
b) Purchases of stock in trade |
-- |
0.300 |
0.300 |
|
c) Changes in inventories of finished goods, work-in-progress
and stock-in-trade |
(10355.000) |
6771.900 |
(3583.100) |
|
d) Employees benefit expenses |
3608.100 |
3024.400 |
6632.500 |
|
e) Depreciation and amortization expenses |
8821.800 |
1830.700 |
16883.800 |
|
e) Power and Fuel |
1963.600 |
8062.000 |
3794.300 |
|
f) Other expenditure |
5148.000 |
5801.400 |
10949.400 |
|
Total expenses |
59613.700 |
55425.500 |
115039.200 |
|
3.
Profit from operations before other income and financial costs |
3434.800 |
2953.800 |
6388.600 |
|
4.
Other income |
2798.200 |
4279.400 |
7077.600 |
|
5.
Profit from ordinary activities before finance costs |
6233.000 |
7233.200 |
13466.200 |
|
6.
Finance costs |
1831.700 |
1487.200 |
3318.900 |
|
9. Profit before tax |
4401.300 |
5746.000 |
10147.300 |
|
10.Tax
expenses |
830.200 |
1005.100 |
1835.300 |
|
11.Net Profit for the Period |
3571.100 |
4740.900 |
83.12.000 |
|
14.Paid-up equity share capital (Nominal value Re.
1/- per share) |
2064.800 |
1914.800 |
2064.800 |
|
ii) Earnings per share
(after extraordinary items) |
|
|
|
|
(a) Basic and diluted |
1.85 |
2.48 |
4.32 |
|
|
|
|
|
|
A. Particulars of shareholding |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number of shares |
1143046506 |
1143046506 |
1143046506 |
|
- Percentage of
shareholding |
55.36% |
59.70% |
55.36% |
|
2. Promoters and
Promoters group Shareholding- |
|
|
|
|
a) Pledged
/Encumbered |
|
|
|
|
Number of shares |
- |
- |
- |
|
Percentage of shares
(as a % of total shareholding of the promoter and promoter group) |
- |
- |
- |
|
Percentage of shares
(as a % of total share capital of the company) |
- |
- |
- |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
763797188 |
613797188 |
763797188 |
|
Percentage of shares
(as a % of total shareholding of the promoter and promoter group) |
100.00% |
100.00% |
100.00% |
|
Percentage of shares
(as a % of total share capital of the company) |
37.00% |
32.06% |
32.00% |
|
*Excludes shares
represebted by Global Depository Receipts. |
|
|
|
|
B.
Investor Complaints |
30.09.2013 |
|
Pending at the beginning of the quarter |
Nil |
|
Receiving during the quarter |
17 |
|
Disposed of during the quarter |
17 |
|
Remaining unreserved at the end of the quarter |
Nil |
UNAUDITED SEGMENT WIE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Particulars |
30.09.2013 (Unaudited) |
30.06.2013 (Unaudited) |
30.09.2013 (Unaudited) |
|
|
|
|
|
|
1.
Segment Revenue |
|
|
|
|
a. Aluminium |
23426.600 |
22111.400 |
45538.000 |
|
b. Copper |
39740.000 |
36357.700 |
76097.700 |
|
Total |
63166.600 |
58469.100 |
121635.700 |
|
Less : Inter Segment Revenue |
(118.100) |
(89.800) |
(207.900) |
|
Net
Sales |
63048.500 |
58379.300 |
121427.800 |
|
|
|
|
|
|
2.
Segment Result (Profit
before Interest and Tax) |
|
|
|
|
a. Aluminium |
1661.400 |
2490.000 |
4151.400 |
|
b. Copper |
2389.700 |
811.300 |
3201.000 |
|
Total |
4051.100 |
3301.300 |
7352.400 |
|
Less
: Finance Costs |
(1831.700) |
(1487.200) |
(3318.900) |
|
|
2219.400 |
1814.100 |
4033.500 |
|
Add : Other unallocated Income of
unallocated Expenses |
2181.900 |
1814.100 |
6113.800 |
|
Profit
before Tax |
4401.300 |
5746.000 |
10147.300 |
|
3.
Capital Employed |
|
|
|
|
a. Aluminium |
342840.100 |
330568.500 |
342840.100 |
|
b. Copper |
53727.800 |
53852.800 |
53727.800 |
|
|
396567.900 |
384421.300 |
396567.900 |
|
Unallocated/ Corporate |
235533.100 |
220669.400 |
235533.100 |
|
Total
Capital Employed |
632101.000 |
605090.700 |
632101.000 |
Notes:
1. Statement of Assets and Liabilities are
given below:
|
SOURCES
OF FUNDS |
30.09.2013 |
|
I.
EQUITY
AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
2064.800 |
|
(b) Reserves & Surplus |
355770.200 |
|
(c) Money received against share warrants |
-- |
|
Total Shareholders’ Funds (1) + (2) |
357835.000 |
|
|
|
|
(3) Non-Current Liabilities |
|
|
(a) long-term borrowings |
209743.100 |
|
(b) Deferred tax liabilities (Net) |
11908.000 |
|
(c) Other long term liabilities |
7464.600 |
|
(d) long-term provisions |
3036.700 |
|
Total Non-current Liabilities (3) |
232152.400 |
|
|
|
|
(4) Current Liabilities |
|
|
(a) Short term borrowings |
47086.200 |
|
(b) Trade payables |
43347.900 |
|
(c) Other current liabilities |
26492.300 |
|
(d) Short-term provisions |
6235.800 |
|
Total Current Liabilities (4) |
123162.200 |
|
|
|
|
TOTAL |
713149.600 |
|
|
|
|
II. ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
331846.800 |
|
(b) Non-current Investments |
146682.500 |
|
(c) Long-term Loan and Advances |
16414.600 |
|
(d) Other Non-current assets |
349.500 |
|
Total Non-Current Assets |
495293.400 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
67505.000 |
|
(b) Inventories |
88340.200 |
|
(c) Trade receivables |
12923.300 |
|
(d) Cash and cash equivalents |
16846.500 |
|
(e) Short-term loans and advances |
24787.600 |
|
(f) Other current assets |
7453.600 |
|
Total Current Assets |
217856.200 |
|
|
|
|
TOTAL |
713149.600 |
The Hon’ble Supreme Court vide its order dated
10th February, 2012 has granted a stay, subject to certain conditions, on the
Order of Hon’ble Allahabad High Court upholding the validity of entry tax on
the Company under UP Tax on Entry of
Goods into Local Areas Act, 2007. In view of above and as per legal opinion
obtained by the Company, no provision has been considered necessary for an
estimated amount of Rs. 3010.000 millions (including Rs. 130.000 millions for
the current quarter).
(a) Pursuant to directions of Dispute
Resolution Panel (DRP) disposing of the objections filed by the Company against
the draft assessment order for AY 2008-09, the Assessing Officer has framed the
assessment by making adjustment, inter alia, amounting to Rs. 2700.000 millions
to total income on account of purported arm’s length fee of corporate guarantee
provided to foreign banks for granting loan to wholly owned subsidiary AV
Minerals B.V. at Netherlands.
(b) The Assessing Officer, without giving
cognizance to direction of DRP for earlier year in a similar case, has made
adjustment of Rs. 10630.000 millions for AY 2009-10, inter alia, by imputing
guarantee fee on two corporate guarantees provided by the Company to foreign
banks. Had the direction of DRP being followed, adjustment would have been Rs.
2300.000 millions.
The Company has been advised that, considering
facts of the case, no provision is necessary for above demands. Appeals against
above orders have been filed.
Other Income includes income of non-recurring
nature to the extent of Rs. 1610.000 millions and Rs. 3640.000 millions in the
current quarter and six months, respectively (Nil and Rs. 1300.000 millions in
the corresponding quarter and six months of the previous year, respectively).
The Company has issued 150,000,000 equity
shares of Rs. 1/- each at a price of Rs. 144.35 per share on 20th September,
2013 against warrants allotted on a preferential basis to the Promoter Group
Companies.
The Company has further issued corporate
guarantee amounting to Rs. 10000.000 millions in support to Utkal Alumina
International Limited (UAIL), a wholly owned subsidiary, for availing a term
loan facility to refinance its existing expensive term loan.
An application for closure of Silvassa Foil
Plant has been filed on 3rd October, 2013 before Secretary, Labour Department,
Union Territory of Dadra and Nagar Haveli, Silvassa under sub-section (1) of
section 25-O of Industrial Disputes Act, 1947.
Figures of previous periods have been
regrouped / reclassified wherever necessary.
The above results have been reviewed by the
Audit Committee of the Board and have been taken on record at the meeting of
the Board of Directors held on Tuesday, 12th November, 2013. Limited Review has
been carried out by the statutory auditors of the Company.
PRESS RELEASES
One-time gain helps Hindalco post 12%
growth in Q1 profit at Rs.4740 Millions
The
Economic Times
14 August 2013
However,
sales fell 3% to Rs.57670.000 Millions on declining prices of copper and
aluminium
Hindalco Industries on Tuesday reported a 12% increase in
quarterly net profit as a one-time gain offset lower sales. India's biggest
aluminium producer posted a net profit of Rs.47410.000 Millions for the
April-June quarter, compared to a net profit of Rs.42480.000 Millions a year
earlier. Sales fell 3% to Rs.576670.000 Millions. The company, however,
benefitted from a 42% rise in non-operating income of Rs.42790.000 Millions,
which included a one-time gain of Rs.2030.000 Millions. Hindalco didn't
elaborate where the gain came from.
The company said it is "re-evaluating its investment
strategy" with respect to its proposed Aditya Refinery and Jharkhand
Aluminium Projects in view of delays in getting various regulatory approvals
and the current uncertain economic environnment. The focus of the company is
now on ramping up of the new projects already on stream, the company said.
Hindalco is confident of ridding through these challenges
with its thrust on stabilising the projects, operational efficiencies and cost
control.
"The sales were bound to fall because of declining
prices of copper and aluminium," said Giriraj Daga, an analyst with Nirmal
Bang International Securities. He added that the company would have benefitted
from a weaker rupee. Global prices of copper fell 6% in the April-June quarter,
while those of aluminium fell 3%. The rupee fell 8.5% against the dollar in
April-June.
Daga said the company's sales will improve in the subsequent
quarters due to growing stability in metal prices. But it would be impacted by
depreciation costs from its new refineries at Utkal and Mahan. Hindalco's
earnings come a day after its unit Novelis reported an 85% plunge in its net
profit due to pricing headwinds and lower demand for some of its products.
Hindalco spent Rs.299350.000 Millions on raw materials during the quarter, down
18% on year. Finance costs rose 83% to Rs.14870.000 Millions.
"The focus of the company is now on ramping up of the
new projects already on stream," the company said in a stateement.
"Depressed LME in an otherwise inflationary scenario poses a significant
challenge," it added. However, the company is confident of riding through
these challenges with its thrust on stabilising the projects, operational efficiencies
and cost control.
The Hindalco share ended marginally lower by 2.45% or Rs.2.30
paise to Rs.91.45 a share after the earning announcement on Tuesday.
The capital employed in the Aluminium Business was Rs.330570.000
Millions as on June 30, 2013, after factoring around Rs.238000.000 Millions
relating to the investments in Mahan, Hirakud FRP and Aditya Aluminium
Projects. During the quarter, the Utkal Refinery went on stream and major
equipment at Hirakud FRP plant was also commissioned, the company said.
Hindalco Q1 net up 12% at Rs.4740 Millions
The
Financial Express
14 August 2013
Aditya Birla Group flagship Hindalco on Tuesday reported a
11.53% increase in its standalone net profit to Rs.4740.000 Millions during the
April-June quarter. The company had posted a net profit of Rs 4250.000 Millions
during the corresponding quarter last year.
Revenue from operations, however, dropped 3.15% to Rs.58380.000
Millions in the June quarter. Net sales of the company fell 3.31% to Rs.5766690.000
Millions during the June quarter, mainly due to an 8.46% decline in revenue
from the copper business (at Rs.3635770.000 Millions).
The company said revenue was impacted due to lower copper
production as one of its smelters went for a planned shutdown.
The revenue from the aluminium business was, however, up 7.2
% at Rs.2211140.000 Millions. The company said the total aluminium output for
the quarter was 139 kilo tonne compared to 132 KT during Q1FY13.
“Q1FY14 performance was achieved despite adverse
macro-economic headwinds. The average aluminium LME dropped around 7% from the
levels seen in Q1FY13. This sharp fall was partially cushioned by depreciating
rupee," the company said.
Hindalco, which has spent around $3 billion or Rs 150000.000 Millions,
on expansion projects at the Mahan Coal block, has already got stage-I
clearance and is currently awaiting the stage-II clearance which it expects to
get by December 2013.
Hindalco Q1 net up 12% at Rs.4740 Millions
The Mint
14 August 2013
Mumbai: Hindalco
Industries Ltd, the Aditya Birla Group’s flagship company, reported a 11.6%
rise in fiscal’s first quarter net profit from a year earlier and said that it
was re-evaluating its investments in two projects as demand for aluminium and
copper remains bleak.
“Indian markets not only stagnated, coal prices also went up by 10% in May,”
Debu Bhattacharya, managing director of Hindalco and vice-chairman of Novelis
Inc., the company’s US unit, told reporters. “It is a double whammy.”
Stand-alone net profit rose to Rs.4740.900 Millions in the three months ended
30 June from Rs.424770.000 millions
Hindalco Industries June quarter net profit rises 12% to
Rs.4740 Millions
Ruchira
Singh, Madhura Karnik
The Mint
14 August 2013
Mumbai: Hindalco Industries Limited, the Aditya Birla Group’s
flagship company, reported a 11.6% rise in fiscal’s first quarter net profit
from a year earlier and said that it was re-evaluating its investments in two
projects as demand for aluminium and copper remains bleak.
“Indian markets not only stagnated, coal prices also went up
by 10% in May,” Debu Bhattacharya, managing director of Hindalco and
vice-chairman of Novelis Inc., the company’s US unit, told reporters. “It is a
double whammy.”
Stand-alone net profit rose to Rs.4740.900 Millions in the three months ended 30
June from Rs.4247.700 Millions in the same quarter a year ago, the company said
on Tuesday. Revenue from operations dropped 3.15% to Rs.58379.300 Millions in
the quarter.
A Bloomberg
poll had pegged stand-alone net profit at Rs.3216.000 Millions and sales at
Rs.60317.000 Millions.
The company said it is re-evaluating its investment strategy with respect to
the proposed Aditya Refinery in Odisha and the Jharkhand aluminium project
owing to delays in getting regulatory approvals and the uncertain economic
environment.
“We cannot invest in this kind of uncertainty and before we
put money on the ground, we must be clear,” Bhattacharya said, adding that the
review is under way and the company has no deadline for its completion.
He said Hindalco’s plan is to invest about Rs.150000.000 - Rs.160000.000 Millions
in the projects.
Hindalco is India’s largest copper maker and second largest aluminium producer in installed capacity terms. Established in 1958, the company has grown through mergers and acquisitions.
The company’s acquisition of Novelis in 2007 put it among the world’s top aluminium makers.
“Hindalco results missed (our) estimates due to weaker copper margins and volume,” said Rakesh Arora, managing director and head of research, India, at Macquarie Capital Securities (India) Private Limited
“FY14 remains a transition year for Hindalco with new
capacities getting commissioned; FY15 promises to be much better,” Arora added.
Hindalco shares lost 2.45% to close at Rs.91.45 on BSE on
Tuesday, while the benchmark Sensex gained 1.49% to close at 19,229.84 points.
Bhattacharya said he was confident that the coal block at
Mahan in Madhya Pradesh would get the necessary government clearances by the
end of this year, which would help lower the cost of production at the 359,000 tonne
Mahan aluminium smelter.
“I would be very surprised if the clearance for stage II
(from the government) does not come by December,” Bhattacharya said, speaking
on the progress of the Greenfield expansion of the company where trial
production has started. Analysts are not optimistic.
“Coal security is a problem for the company and the benefit
of the Mahan project will come only in FY15,” said a metals analyst with an
international brokerage company who did not want to be identified.
Bhattacharya said that in the quarter, demand growth for
aluminium in the country was “zero”. Another senior official said the demand
growth for copper was negligible in the quarter in India.
The Indian economy grew 5% in the year ended 31 March, the
slowest pace in 10 years, and metal-consuming sectors such as construction,
electrical and automobiles saw muted growth.
However, there was hope that the good monsoon could spur
some growth in the quarters ahead, the two officials added.
The company officials said it was looking to refinance its
debt of Rs.200000.000 Millions
(debt to equity ratio 0.38) after refinancing Rs.50000.000 Millions recently that led to a
saving of Rs.1500.000 Millions
in interest costs.
“We are constantly looking for possibilities for saving
interest cost,” said Bhattacharya, who declined to say if another restructuring
was in the offing.
The depreciating rupee in the quarter did not help
compensate for the sharp price fall of aluminium prices on the London Metal
Exchange (LME) that serves as a benchmark for most base metal producers in
India.
Aluminium prices were at Rs.102.6 per kg in the April to
June quarter, down 4.11% from Rs.107 per kg in the same quarter a year ago.
On the LME, aluminium prices fell by 7.23% in the same
quarter.
Hindalco
manages to refinance Rs.47000.000 Millions from SBI
and Axis Bank for its Utkal alumina project
Arjit BarmanThe
Economic Times
31 July 2013
In what would
easily be the most aggressive financing done in recent times involving a large
Indian corporate, Aditya Birla Group flagship Hindalco has managed to refinance
Rs 47000.000
Millions from State Bank of India and Axis Bank
for its Utkal alumina project.
At an interest rate
of 10.15% payable over an eight-year period, this will imply a reduction of a
whopping 300 basis points from the previous loan
Scheduled to be commissioned in the
second half of this year, Utkal is a 1.5-million-tonne refinery that will feed
the company's Mahan and Aditya smelters in Madhya Pradesh
and Orissa, respectively. The total project cost is Rs 70090 Millions, 70% of
which has been funded through debt.
The project debt of Rs.49060.000 Millions
was tied up three years ago from a consortium of 28 public sector banks,
including SBI, Punjab National Bank, Bank of Baroda and Canara Bank.
Interestingly, the banks had agreed to allow Hindalco
to draw down the amount over a three-year period during the construction of the
plant without any commitment fees.
The company also retained the right to pre-pay the
facility, without any penalty, every year. With the project gearing up for
commissioning, there was much better visibility of future cash flows and
EBITDA, which helped Hindalco go for refinancing on much better rates ahead of
this year's loan anniversary. Of the total amount, Rs.40000.000 Millions
was raised as a rupee term loan from the two banks at SBI's base rate plus 50
basis points, which translates to 10.20%. The remaining amount was financed
from the CP market as short-term debt at 9.95% rate.
This makes it the lowest pricing achieved by any
corporate in India in recent times, amid unprecedented volatility. Banking
industry officials said that with most banks having a base rate higher than
10.20%, it became difficult for them to match Hindalco's expectations.
"The deal demonstrates the creditworthiness of
the company and its ability to tap markets at benchmark rates in spite of
liquidity and rates hardening in recent weeks. Utkal will be able to realise
annual savings of approximately Rs.1500 Millions," said Alphonso Richard
Das, president (finance), Hindalco. The exercise assumes significance as it was
concluded in the backdrop of a challenging financial market during the past one
month.
There were massive capital outflows due to concerns
over the US Fed Reserve contracting its quantitative easing, following which
the rupee went into a free fall resulting in 12-15% depreciation. RBI
intervened with a series of steps to stem the currency's fall, but that choked
up liquidity in the banking system. These sudden developments ended up spiking
the government's borrowing costs to double-digit levels.
Hindalco, said corporate banking sources, also had
to tweak its strategy by dropping its initial bond issue programme, and opt for
bank debt. Utkal Alumina International Limitede had planned to raise Rs.20000.000 Millions
($335.8 million) through a 10-year floating rate paper benchmarked to the SBI
base rate.
Hindalco announces Q2
FY 2013-14 standalone results [unaudited]
|
Financial highlights |
Q2FY14 |
Q2FY13 |
Q1FY14 |
H1FY14 |
H1FY13 |
|
Revenue from
Operations |
63050.000 |
61640.000 |
58380.000 |
121430.000 |
121910.000 |
|
EBITDA |
5400.000 |
5150.000 |
4780.000 |
10180.000 |
9780.000 |
|
Other income |
1190.000 |
1320.000 |
2250.000 |
3440.000 |
3040.000 |
|
PBITDA before
Non-recurring Income |
6590.000 |
6480.000 |
7030.000 |
13620.000 |
12820.000 |
|
Non-recurring Income |
1610.000 |
--- |
2030.000 |
3640.000 |
1300.000 |
|
PBITDA |
8200.000 |
6480.000 |
9060.000 |
17260.000 |
14120.000 |
|
Depreciation |
1960.000 |
1730.000 |
1830.000 |
3790.000 |
3430.000 |
|
Finance Costs |
1830.000 |
280.000 |
1490.000 |
3320.000 |
1090.000 |
|
Profit before tax |
4400.000 |
4470.000 |
5750.000 |
10150.000 |
9600.000 |
|
Tax Expenses |
830.000 |
880.000 |
1010.000 |
1840.000 |
1760.000 |
|
Net profit |
3570.000 |
3590.000 |
4740.000 |
8310.000 |
7840.000 |
|
Basic EPS |
1.85 |
1.87 |
2.48 |
4.32 |
4.09 |
Note: Certain descriptions and /or figures of earlier periods have been changed/regrouped to conform to current practices
Hindalco, the flagship company of Aditya Birla Group, today announced its unaudited results for the quarter ended September 30, 2013.
Operational performance in Q2FY14 improved over Q2FY13 as well as over Q1FY14. The average aluminium LME in Q2FY14 dropped by around 3 per cent and 7 per cent respectively from the levels seen in Q1FY14 and in Q2FY13. The decline was offset by the depreciating Rupee.
The performance of Copper Business has improved significantly compared to Q1FY14.
The results of Q2FY14 include a non-recurring income of Rs.610.000 millions and a dividend of Rs.1000.000 millions from subsidiary companies. Other income was impacted by lower treasury yield due to liquidity tightening.
Finance costs were higher, given higher average borrowing.
Business results
Aluminium
Aluminium sales grew by 11 per cent to Rs.23430.000 millions from Rs.21050.000 millions
in Q2FY13 on the back of higher volumes. Aluminium EBIT stood at Rs.1660.000 millions
against Rs.1700.000 millions in Q2 FY13.
Total metal production stood at 132 Kt (excluding production at Mahan) for the quarter compared to 128 Kt in Q2FY13. Production of Alumina (excluding production at Utkal Alumina) in Q2FY14 was higher at 334 Kt vs.328 Kt in Q2FY13, but was lower compared to 348 Kt in Q1FY14 mainly due to a planned ramp down at one of the refineries.
Value-added product sales stood at 65 Kt vs. 62 Kt in Q2FY13 and 59 Kt in Q1FY14. The Silvassa Foil plant continues to be under lock-out. An application for closure of Silvassa Foil plant has been filed on 3rd October, 2013 before the concerned authorities.
The capital employed in the Aluminium Business was nearly Rs.343000.000 millions as on September 30, 2013, of which around Rs.251200.000 millions pertained to the Greenfield investments, viz., Mahan, Hirakud FRP and Aditya Aluminium Projects.
Copper
Copper sales stood at Rs.39740.000 millions, with EBIT at Rs.2390.000 millions
vs. Rs.2090.000 millions in Q2FY13 and Rs.810.000 millions in Q1FY14.
Cathode production was at 77 Kt as against 78 Kt in Q2FY13 and 68 Kt in Q1FY14. The value-added CCR production was maintained at 36 Kt vs. 37 Kt in Q2FY13.
The capital employed in Copper Business was around Rs.53750.000 millions.
Greenfield projects
The production ramp-up at Mahan smelter and at Utkal Alumina refinery is
underway as planned. In Q2FY14, the Mahan smelter produced 7.4 Kt metal and
Utkal refinery produced 41 Kt of hydrate as alumina equivalent.
The Aditya Aluminium smelter is in an advanced stage of completion and is gearing for the first metal tapping.
Company outlook
The long spell of subdued LME has adversely affected the global aluminium
industry and its margins and production levels significantly. Greenfield
projects are ramping up as planned, however EBITDA streams will take time to
scale up with delayed access to captive coal. With improving TcRc, Copper
business is expected to have a stable outlook despite a sharp drop in
by-product realisation.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.98 |
|
|
1 |
Rs.101.49 |
|
Euro |
1 |
Rs.84.79 |
INFORMATION DETAILS
|
Information Gathered
by : |
PLK |
|
|
|
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
74 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership background
(20%) Payment record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NB |
NEW BUSINESS |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.