MIRA INFORM REPORT
|
Report Date : |
25.03.2013 |
IDENTIFICATION DETAILS
|
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) : |
31.03.2012 |
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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
Aluminium Products. |
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No. of Employees
: |
12000
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 1281000000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Aditya Birla Group. It is a well established and
a reputed company having fine track
record. Financial position of the company appears to be sound. Fundamentals
are strong and healthy. Trade relations are reported as fair. Business is
active. Payments are reported to be regular and as per commitments. The company can be considered good for any 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including industrial
deregulation, privatization of state-owned enterprises, and reduced controls on
foreign trade and investment, began in the early 1990s and has served to
accelerate the country's growth, which has averaged more than 7% per year since
1997. India's diverse economy encompasses traditional village farming, modern
agriculture, handicrafts, a wide range of modern industries, and a multitude of
services. Slightly more than half of the work force is in agriculture, but
services are the major source of economic growth, accounting for more than half
of India's output, with only one-third of its labor force. India has
capitalized on its large educated English-speaking population to become a major
exporter of information technology services and software workers. In 2010, the
Indian economy rebounded robustly from the global financial crisis - in large
part because of strong domestic demand - and growth exceeded 8% year-on-year in
real terms. However, India's economic growth in 2011 slowed because of persistently
high inflation and interest rates and little progress on economic reforms. High
international crude prices have exacerbated the government's fuel subsidy
expenditures contributing to a higher fiscal deficit, and a worsening current
account deficit. Little economic reform took place in 2011 largely due to
corruption scandals that have slowed legislative work. India's medium-term
growth outlook is positive due to a young population and corresponding low
dependency ratio, healthy savings and investment rates, and increasing
integration into the global economy. India has many long-term challenges that
it has not yet fully addressed, including widespread poverty, inadequate
physical and social infrastructure, limited non-agricultural employment
opportunities, scarce access to quality basic and higher education, and
accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA+ (Long Term Ration) |
|
Rating Explanation |
High degree of safety. It carry very low credit risk. |
|
Date |
07.01.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (Short Term Rating) |
|
Rating Explanation |
Strongest degree of safety. It carry lowest credit risk. |
|
Date |
07.01.2013 |
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.
LOCATIONS
|
Registered Office/ Marketing Head Office: |
Century Bhavan, 3rd
Floor, |
|
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
– Aluminium : |
Ahura Centre, 1st
Floor, 82, Mahakali Caves Road, Mumbai-400093, Maharashtra, India |
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Tel. No.: |
91-22-66917031 /
30 / 37 / 40 /00 |
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Fax No. : |
91-22-66917070 |
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Principal
Office and Works / Renusagar Power Division |
District
Sonbhadra, P. O. Renukoot – 231217, Mirzapur, |
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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 - 392130, 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 : 91-5446-252077-9 Fax: 91-5446-252107 Renusagar
Power Division P. O. Renusagar, District Sonbhadra Uttar Pradesh, India Tel : 91-5446-272502-5 Fax: 91-5446272382 Alupuram
Smelter Alupuram P.B. No. 30, Kalamassery 683 104, District:
Ernakulam, Kerala, India Tel: 91-484-2532441 Fax: 91-484-2532468 Hirakud
Smelter Hirakud 768 016, District Sambalpur, Orissa,
India Tel: 91-663-2481307 Fax: 91-663-2481356 Hirakud
Power Post Box No.12, Hirakud 768 016, District: Sambalpur,
Orissa Alupuram, India Tel: 91-663-2481408 Fax: 91-663-2481342 COPPER: Birla
Copper Division P.O. Dahej, Lakhigam Post, District. Bharuch – 392 130, Tel: 91-2641- 256004-06/ 251009 Fax: 91-2641- 251002-3 CHEMICALS: Muri
Alumina Post Chotamuri-835 101, District Ranchi,
India Phone: 91-6522- 244396 Fax: 91-6522-244231 Village Yamanapur , Tel: 91-831-2472716 Fax: 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: 91-2321-260036 Fax: 91-2321-260037 Lohardaga
Mines Dist: Lohardaga 835 302, Jharkhand Tel: 91-6526-224446 Fax: 91-6526-224446 Talabira
Mines Talabira-1, Qrs. No. A6/1, Saraswati Vihar, P.O. Sankarma,
District Sambalpur, Orissa, India Tel: 91-663-2230573 SHEET,
FOIL, WHEEL, PACKAGING AND EXTRUSIONS Foils and Wheels Division, Village Khutli, Khanvel,
Silvassa-396230, U.T., India Tel: 91-260-2677021/4 Fax: 91-260-2677025 Belur
Sheet 39, Grand Trunk Road, Belurmath 711 202, District: Howrah,
West Bengal, India Tel: 91-33-26547210 Fax: 91-33-26549982 Taloja
Sheet Plot 2, MIDC Industrial Area, Taloja A.V., District:
Raigad, Navi Mumbai - 410 208, Maharashtra, India Tel: 91-22-27412261/ 66292929 Fax: 91-22-27412430 Alupuram
Extrusions Alupuram, P.B. No.30, Kalamassery - 683 104, District:
Ernakulam, Kerala, India Tel: 91-484-2532441 Fax: 91-484- 2532468 Mouda
Unit Village Dahali, Tel: 91-7115-660777/786 Kollur
Works Village- Kollur, Re Puram Mandal, Via Mutangi, Medak
District, Andhra Pradesh – 502 300, India Tel: 91-8413- 234300/ 234204/05 Fax: 91-8455-288829 |
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Regional
Office : |
Also
Located At:
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DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Kumar Mangalam Birla |
|
Designation : |
Chairman |
|
Address : |
16-A, IL-Palazzo, Little Gibbs Road, Mumbai – 400 006, Maharashtra,
India |
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Date of Appointment : |
16.11.1992 |
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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. 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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Date of Appointment : |
11.09.1998 |
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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. Meleveetil Damodaran |
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Designation : |
Non Executive Directors |
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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. 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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Name : |
Mr. Debnaranyan Bhattacharya |
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Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. Anil Malik |
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Designation : |
Company Secretary |
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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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Name : |
Mr. Praveen
Maheshwari |
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Designation : |
Chief Financial Officer |
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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 |
|
Designation : |
President and Chief Executive Officer |
|
UTKAL ALUMINA INTERNATIONAL LIMITED |
|
|
Name : |
Mr. Surya Kanta Mishra |
|
Designation : |
Chief Executive Officer |
|
ADITYA BIRLA MINERALS LIMITED |
|
|
Name : |
Mr. Debnarayan Bhattacharya |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Sunil Kulwal |
|
Designation : |
Chief Executive Officer and MD |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
Individuals / Hindu Undivided Family |
2398696 |
0.14 |
|
Bodies Corporate |
595082362 |
33.91 |
|
Any Others (Specify) |
16316130 |
0.93 |
|
|
16316130 |
0.93 |
|
|
613797188 |
34.98 |
|
(2) Foreign |
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|
|
Total shareholding of Promoter and Promoter Group (A) |
613797188 |
34.98 |
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|
(1) Institutions |
|
|
|
Mutual Funds / UTI |
44762626 |
2.55 |
|
Financial Institutions / Banks |
77621650 |
4.42 |
|
|
699695 |
0.04 |
|
|
158612168 |
9.04 |
|
Foreign Institutional Investors |
520039433 |
29.63 |
|
Sub Total |
801735572 |
45.68 |
|
(2) Non-Institutions |
|
|
|
|
124039997 |
7.07 |
|
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|
|
|
Individual shareholders holding nominal share capital up to Rs. 0.100
Million |
155719679 |
8.87 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
10514594 |
0.60 |
|
Any Others (Specify) |
49126150 |
2.80 |
|
Non Resident Indians |
10833411 |
0.62 |
|
|
3583741 |
0.20 |
|
Foreign Corporate Bodies |
32554920 |
1.86 |
|
Trusts |
1982873 |
0.11 |
|
Sub Total |
339400420 |
19.34 |
|
Total Public shareholding (B) |
1141135992 |
65.02 |
|
Total (A)+(B) |
1754933180 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
14542309 |
0.00 |
|
(2) Public |
145103579 |
0.00 |
|
Sub Total |
159645888 |
0.00 |
|
Total (A)+(B)+(C) |
1914579068 |
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:
- * Installed capacity of Hirakud Smelter increased.
- # 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.
- @ Include Nil T (Previous year 1 T) converted from outside party
and 319 T (Previous year 67 T) transferred for captive consumption.
- $ Include 13 T (Previous year Nil T) transferred for captive
consumption.
- Alumina includes 1059478 T (1053571 T) transferred for own
consumption/ further processing.
- Production of CCR, Copper cathodes, Sulphuric acid, and Phosphoric
acid include 533 T, 142,926 T, 318,495 T and 102,167 T (Previous year 1182
T, 148,424 T, 251,654 T and 85,187 T) respectively which have been
captively consumed / to be consumed. Copper cathodes also include 10,707 T
(Previous Year Nil T) being production out of customers’ material.
- During the year production and
standardization loss of DAP and complexes is 360 T (Previous Year is 302
T).
GENERAL INFORMATION
|
No. of Employees : |
12000
(Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Singhi and Company Chartered Accountant |
|
Address : |
Kolkata, West Bengal, India |
|
|
|
|
Cost Auditors : |
|
|
Name : |
R. Nanabhoy and Company Chartered Accountant |
|
Address : |
Mumbai, Maharashtra India |
|
|
|
|
Name : |
Mani and Company Chartered Accountant |
|
Address : |
Kolkata, West Bengal, India |
|
|
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|
Joint Ventures : |
|
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|
|
|
Trust of the Company : |
Trident Trust |
|
|
|
|
Subsidiaries : |
|
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Associates : |
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CAPITAL STRUCTURE
AS ON 31.03.2012
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 Millions |
|
|
TOTAL |
|
Rs. 2150.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1915088557 |
Equity Shares |
Rs.1/- each |
Rs. 1915.100
Millions |
|
Less – 546249 |
Face Value of Equity Shares Forfeited |
|
Rs. 0.500
Million |
|
Add |
Forfeited Shares (Amount Originally Paid Up) |
|
Rs. 0.200 Million |
|
|
TOTAL |
|
Rs. 1914.800 Millions |
NOTES
(a)
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.
(b)
Reconciliation of shares outstanding at the
beginning and at the end of the reporting period:
|
|
2011-2012 |
|
|
|
Numbers |
Rs. In Millions |
|
Equity Shares
outstanding at the beginning of the period |
1,914,397,914 |
1914.400 |
|
Equity Shares allotted pursuant to exercise of ESOP |
144,394 |
0.20 |
|
Equity Shares
allotted, earlier kept in abeyance due to legal case pending |
-- |
-- |
|
Equity Shares
outstanding at the end of the period |
1,914,542,308 |
1914.600 |
(c) Rights,
preferences and restrictions attached to Equity Shares:
The Company has
one class of equity shares having a par value of Rs. 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.
(d) Details of
shareholders holding more than 5% equity Shares in the Company on reporting
date:
|
|
2011-2012 |
|
|
|
Numbers of
Shares Held |
Percentage of
Holdings |
|
(i) IGH Holdings
Private Limited |
228,963,487 |
11.96 |
|
(ii) Turquoise Investment and Finance Limited |
99,012,468 |
5.17 |
|
(iii) Morgan
Guaranty Trust Company of New York (represents GDRs) |
160,747,995 |
8.40 |
|
(iv) Life Insurance Corporation of India and its Associates |
190,713,686 |
9.96 |
(e)
Shares reserved for issue under options:
The Company has
reserved equity shares for issue under the Employee Stock Option Scheme. The Company
has also reserved equity shares for issue against warrants allotted on
preferential basis to the Promoter Group.
“Share Based Payment” for details of Employee
Stock Option Scheme and on “Money received against Share Warrants” for details
of share warrants allotted to the Promoter Group.
(f)
Details of shares allotted without payment being
received in cash during five years immediately preceding the Balance Sheet date
are given below:
|
|
Year Ended |
||||
|
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Equity Shares: |
|
|
|
|
|
|
Shares allotted
as fully paid up pursuant to contract without payment being received in cash - (i) |
-- |
-- |
-- |
376 |
-- |
|
Preference Shares: |
|
|
|
|
|
|
Shares allotted as
fully paid up pursuant to contract without payment being received in cash -
(i) |
-- |
-- |
-- |
2,032,734 |
-- |
|
Shares redeemed - (i) |
-- |
-- |
2,032,734 |
-- |
-- |
(i)
During the year ended 31st March, 2009, the Company
has allotted 376 Equity Shares of Rs. 1/- each and 2,032,734 6% Redeemable
Cumulative Preference Shares of Rs. 2/- each fully paid-up to the shareholders
of erstwhile Indian Aluminium Company, Limited pursuant to a Scheme of Amalgamation without payment being received
in cash. However, 2,032,734 6% Redeemable Cumulative Preference Shares,
allotted as above, has been redeemed on 1st April, 2009.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1914.800 |
1914.600 |
1913.700 |
|
|
2] Money Received Against Share Warrants |
5413.100 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
312996.800 |
295086.400 |
277156.100 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
5] Employee Stock Exchange |
0.000 |
0.000 |
39.900 |
|
|
NETWORTH |
320324.700 |
297001.000 |
279109.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
112761.600 |
51703.100 |
51539.000 |
|
|
2] Unsecured Loans |
32957.500 |
38675.800 |
12030.000 |
|
|
TOTAL BORROWING |
145719.100 |
90378.900 |
63569.000 |
|
|
DEFERRED TAX LIABILITIES |
12245.600 |
12874.900 |
13664.400 |
|
|
|
|
|
|
|
|
TOTAL |
478289.400 |
400254.800 |
356343.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
71502.000 |
75843.800 |
77348.200 |
|
|
Capital work-in-progress |
162569.400 |
60304.100 |
37027.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
180871.000 |
182467.500 |
214808.300 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
Other Non Current Assets |
78.100 |
1.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
77428.600
|
76514.000
|
59214.100 |
|
|
Sundry Debtors |
14274.500
|
12554.900
|
13118.700 |
|
|
Cash & Bank Balances |
7223.000
|
2333.900
|
1402.100 |
|
|
Other Current Assets |
3557.800
|
2470.800
|
534.300 |
|
|
Loans & Advances |
38971.800
|
52873.400
|
14373.700 |
|
Total
Current Assets |
141455.700
|
146747.000 |
88642.900 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
46597.700
|
40829.500
|
29662.300 |
|
|
Other Current Liabilities |
19517.100
|
13444.100
|
24607.000 |
|
|
Provisions |
12072.000
|
10835.000
|
7214.900 |
|
Total
Current Liabilities |
78186.800
|
65108.600 |
61484.200 |
|
|
Net Current Assets |
63268.900
|
81638.400
|
27158.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
478289.400 |
400254.800 |
356343.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
265967.800 |
238592.100 |
195220.900 |
|
|
|
Other Income |
6157.900 |
3474.900 |
2598.500 |
|
|
|
TOTAL (A) |
272125.700 |
242067.000 |
197819.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchase
of Stock –in – Trade |
2059.800 |
5222.200 |
719.900 |
|
|
|
Cost of Material Consumed |
178430.800 |
155309.400 |
172554.300 |
|
|
|
Employees Benefits Expenses |
11133.500 |
10403.900 |
0.000 |
|
|
|
Power and Fuel |
28706.700 |
22214.800 |
0.000 |
|
|
|
Other Expenses |
18662.500 |
17841.600 |
0.000 |
|
|
|
Impairment |
0.000 |
0.000 |
(41.500) |
|
|
|
Increase / Decrease in Stocks |
(4073.100) |
(3946.700) |
(7552.500) |
|
|
|
TOTAL (B) |
234920.200 |
207045.200 |
165680.200 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
37205.500 |
35021.800 |
32139.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2936.300 |
2199.600 |
2780.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
34269.200 |
32822.200 |
29359.200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
6899.700 |
6874.800 |
6713.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
27369.500 |
25947.400 |
22645.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4997.500 |
4578.200 |
3489.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
22372.000 |
21369.200 |
19156.300 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
3000.000 |
3000.000 |
|
|
|
|
|
|
|
|
|
Add |
TRANSFER
FROM DEBENTURE REDEMPTION RESERVE |
NA |
0.000 |
875.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
17531.600 |
17019.100 |
|
|
|
Proposed Dividend on Equity Shares |
NA |
2871.700 |
2583.200 |
|
|
|
Tax on Proposed Dividend |
NA |
465.900 |
429.000 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
3500.000 |
3000.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export
of Goods on FOB |
78566.000 |
70960.000 |
52675.800 |
|
|
|
Others |
0.400 |
11.400 |
110.600 |
|
|
TOTAL EARNINGS |
78566.400 |
70971.400 |
52786.400 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw
Materials |
150812.900 |
143931.800 |
115214.200 |
|
|
|
Coal and
Fuel |
2590.300 |
1787.600 |
1369.700 |
|
|
|
Components
and Spare Parts |
896.200 |
490.200 |
2423.600 |
|
|
|
Capital
Goods |
13002.500 |
9006.200 |
890.100 |
|
|
|
Trading
Goods |
2047.000 |
3966.400 |
719.900 |
|
|
TOTAL IMPORTS |
169348.900 |
159182.200 |
120617.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
11.68 |
11.17 |
10.82 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3RD
Quarter |
|
Net Sales |
60279.400 |
61635.200 |
68717.200 |
|
Total Expenditure |
55648.200 |
56482.100 |
62896.600 |
|
PBIDT (Excl OI) |
4631.200 |
5153.100 |
5820.600 |
|
Other Income |
3014.300 |
1323.700 |
3180.800 |
|
Operating Profit |
7645.500 |
6476.800 |
9001.400 |
|
Interest |
814.700 |
278.600 |
1689.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
6830.800 |
6198.200 |
7311.600 |
|
Depreciation |
1704.800 |
1727.500 |
1883.500 |
|
Profit Before Tax |
5126.000 |
4470.700 |
5428.100 |
|
Tax |
878.300 |
881.900 |
1092.900 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
4247.700 |
3588.800 |
4335.200 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
4247.700 |
3588.800 |
4335.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
8.22
|
8.83 |
9.68 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.29
|
10.72 |
11.59
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.85
|
11.66 |
13.64
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.09 |
0.08
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.45
|
0.30 |
0.23
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.81
|
2.25 |
1.44
|
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 |
No |
|
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) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
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 |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
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 |
|
Unsecured Loan |
Rs.
In Millions 31.03.2012 |
Rs.
In Millions 31.03.2011 |
|
Deferred Payment Liabilities |
30.200 |
45.500 |
|
From Banks: |
|
|
|
Buyers Credit |
26644.300 |
10023.400 |
|
Packing Credit |
5997.900 |
4873.000 |
|
Payable under Trade Financing Arrangements |
285.100 |
17683.900 |
|
Others |
0.000 |
6050.000 |
|
|
|
|
|
TOTAL |
32957.500 |
38675.800 |
STANDALONE RESULTS
Standalone
Revenues for the year crossed the Rs. 250000.000
Millions mark and stood at Rs. 265970.000
Millions driven by higher volume and realization.
Profit before
Interest and Depreciation was Rs. 37210.000 Millions, an increase of over 6%
compared to FY11, driven by higher volumes in the Aluminium business and higher
TcRc in the Copper Business, along with improved efficiencies and higher other
income.
In the Aluminium
Business, there has been a significant increase in costs, especially in case of
Coal (by 20%), Furnace oil (by 40%), Caustic Soda (by 25%) and Carbon (30%).
The cost surge was partly offset by assets weating and improving operational
efficiencies, coupled with better realization. The Profit before Interest and
Taxes was at Rs. 18220.000 Millions for FY12 compared to Rs. 20040.000 Millions
in FY11.
In the Copper
Business, revenues stood at Rs. 175600.000 Millions compared to Rs. 158970.000
Millions in FY11, due to higher LME and by-product revenue. Profit before
interest and taxes was higher by 33% to Rs. 8020.000 Millions, due to improved
efficiencies, higher TCRC and byproduct credit, notwithstanding higher energy
costs and a planned shutdown in FY12.
FINANCIAL PERFORMANCE
The Company’s
Consolidated Revenue crossed Rs. 800000.000 Millions up 12% and Consolidated
Net Income is at a record Rs. 33970.000 Millions reflecting a rise of 38%
SEGMENT PERFORMANCE
Of the total
annual revenue of Rs. 808210.000 Millions, Aluminium Business contributed to
Rs. 620590.000 Millions, up 10% over the last year. Aluminium EBIT for FY12 remained
flat at Rs. 44950.000 Millions vis-a-vis to Rs. 44690.000 Millions in FY11. The
results were impacted by lower profits in Indian Aluminium operation due to
macro-economic conditions.
In the Copper
Business, revenue is higher at Rs. 183640.000 Millions, a rise of 16% from Rs.
158820.000 Millions in FY11, mainly on account of higher volumes, higher copper
LME and by-product credits. EBIT of Rs. 11190.000 Millions vs. Rs. 10820.000 Millions in FY11.
FINANCE
PREFERENTIAL
WARRANTS
The Company has allotted
150,000,000 warrants on a preferential basis to the promoters on March 22,
2012, entitling them to apply for and obtain allotment of one equity share of
Rs. 1 each at a price of Rs. 144.35 per share against each such warrant at any
time on or before the expiry of 18 months from the date of allotment in one or
more tranches. The Company has received an amount equal to 25 per cent of the
price of each such warrant.
DEBENTURE ISSUE
To further augment
it’s financial resources, the Company has issued 10 year 9.55 per cent Secured
Redeemable Non-Convertible Debentures for a total amount of Rs. 30000.000
Millions on private placement basis on April 25, 2012. These debentures are
listed on the wholesale debt market segment of National Stock Exchange (NSE).
TERM LOANS FROM
BANKS RS. 51429.900 MILLIONS :
As per original
loan agreement Rs. 21466.600 Millions, Rs. 25714.900 Millions and Rs. 4248.400
Millions are repayable in FY14, FY15 and FY16, respectively. However, in
exercise of its prepayment option without payment of any fees or penalty, the
Company has served a notice on all lenders to prepay this loan on June 29,
2012.
NOVELIS INC. (WHOLLY OWNED SUBSIDIARY)
Novelis reported
strong operating results in FY12 despite challenging market conditions globally.
Its premium product portfolio, longterm customer base and focused business
model enabled Novelis to produce solid results for the year.
Net sales for FY12
were $11.1 billion, a 5% increase compared to the $10.6 billion reported for
the same period a year ago, mainly the
result of favourable conversion premiums across all regions and an increase in
the average aluminum prices.
Novelis’s robust
business model, good cost management and focus on premium products resulted in
a record EBITDA per tonne of $371 for the year and the second straight year of
$1 billion plus adjusted EBITDA. Shipments of aluminium rolled products totaled
2,838 Kt for FY12, compared to 2,969 Kt in FY11. The decrease in shipments was
primarily a result of the overall economic slowdown and de-stocking by
customers. The continued optimization of Novelis’s footprint will improve its
competitive position; these include the divesture of three foil plants in
Europe and closure of an aluminum sheet mill in Canada. During the year, Novelis
invested in major recycling initiatives in all four operating regions,
including advanced equipment and technology to process diversified scrap
inputs, which will enable the Company to achieve recycled content of 50 percent
in its products by 2015.
During FY12,
Novelis completed the acquisition of 31.3 percent of the outstanding shares of
its Korean subsidiary for $ 344 million raising Novelis’s ownership of the
Korean subsidiary to 99%.
ADITYA BIRLA MINERALS LIMITED [51% SUBSIDIARY]
The production of
Copper remained flat at 59.7 Kt in FY12. Net profit for the year was AUD 27
million against AUD 57 million in FY11, impacted by lower production at Nifty
on account of the decline in the mine grade (which was in line with the mining
plan) and slower-than-expected ramp-up at Mt Gordon.
MANAGEMENT DISCUSSION AND ANALYSIS
BUSINESS OVERVIEW
FY 12 started on a
positive note amidst hopes of consolidation of global economic recovery that
had gathered momentum. At the start of the fiscal, an air of optimism was
prevalent; although amidst cautionary environment. Doubts had been raised about
the sustainability of this recovery, especially in the face of perceptible head
winds
in the form of
rising inflationary concerns in emerging economies, seeming signs of overheating
in some economies, sovereign debt concerns in Europe and Geopolitical
instability in the Middle East post Arab Spring. However, very few at that
point in time, expected a rapid meltdown in commodities.
The major
commodity demand driver China, (that accounts for over 40% of global demand in
Aluminium and Copper) slowed down considerably on fears of hard landing for the
economy. India too, suffered on account of monetary tightening and subdued
investment and growth climate with industry/GDP growth slowing down
considerably.
In such uncertain
environment, the only commodity that maintained its upward momentum was crude.
Geo-political
uncertainty and strong demand ensured that crude and its derivatives and other
energy prices remained strong throughout the year thus ensuring strong cost
pressures for the end use industries. In India, coal prices continued upward
march.
Against this
backdrop, FY12 once again tested the Company’s resilience and determination to
deliver in the face of significant macroeconomic challenges. The Company’s
unique business model with a portfolio of businesses comprising steady
conversion businesses and volatile yet highly profitable upstream businesses
once again yielded desired results helping the company outperform the industry
peers by miles. Depressed commodity prices and severe cost push impacted
aluminium and copper mining businesses severely, especially in the second half.
But copper smelting business made a strong contribution and Novelis continued
to deliver a steady, robust performance ensuring healthy operational cash flows
in a challenging environment.
BUSINESS HIGHLIGHTS
• The Company’s
Consolidated Revenue at Rs. 808210.000 Millions has been the highest ever, a
growth of 12% Year-on-Year, aided by better product mix and depreciation of
Rupee.
• Profit before
depreciation, interest and taxes stood at Rs. 89730.000 Millions as against Rs.
84410.000 Millions in FY11.
• Net profit
attributable to the shareholders increased to Rs. 33970.000 Millions, up by 38%
over FY11. The increase in profit is primarily attributable to the strong
performance at Novelis and Copper Business in India highlighting their
strengths emanating from their balanced portfolio approach, low cost operation
and strong value added downstream operations.
• Of the total
annual revenue of Rs. 808210.000 Millions, Aluminium Business contributed Rs.
620590.000 Millions, up 10% over the last year. Aluminium EBIT for FY12
remained flat at Rs. 44950.000 Millions compared to Rs. 44690.000 Millions in
FY11. The results were impacted by lower profits in Indian Aluminium operation
due to macro-economic conditions.
• In the Copper
Business, revenue was higher at Rs. 183640.000 Millions, a rise of 16% from Rs.
158820.000 Millions in FY11, mainly on account of higher volumes, higher copper
LME and co-product credits. The Copper EBIT was Rs. 11190.000 Millions vs. Rs.
10820.000 Millions in FY12.
This was an
exceptional performance on all counts and was achieved on the back of strong
operating efficiencies, enhanced product mix, focused value creation through
waste-to-wealth initiatives and higher co-product margins.
• They continued
with further financing initiatives to strengthen their Balance Sheet.
• The Company
raised Rs. 30000.000 Millions through secured non convertible debentures, the
single largest issuance by a private corporate in India in the recent times at
a very attractive pricing in a deal that was widely termed as market reviving
deal. The Company took advantage of the better than expected 50bps rate cut to
close such a large capital raising in a challenging market. These debentures
are listed on the wholesale debt market segment of National Stock Exchange.
• The Company
allotted 150,000,000 warrants on a preferential basis to the Promoters on March
22, 2012, entitling them to apply for and obtain allotment of one equity share
of Rs. 1 each at a price of Rs. 144.35 per share against each such warrant at
any time on or before the expiry of 18 months from the date of allotment in one
or more tranches. The Company has received an amount equal to 25% of the price
of each such warrant.
HINDALCO STANDALONE:
STRONG FINANCIAL
PERFORMANCE NOT WITHSTANDING SEVERE COST CHALLENGES:
For the year ended
March 31, 2012, net sales at Rs. 265970.000 Millions were almost 11% higher
than the previous year’s sales. Highest ever aluminium volumes, better product
and geographic mix, strong co-product credit and higher realizations led by
higher commodity prices enabled the company clock an impressive top line growth.
PBITDA for FY12
stood at Rs. 37210.000 Millions as against Rs. 35020.000 Millions in FY11
despite sharp rise in costs and drop in LME in the second half. Higher PBIDTA
was on account of higher volumes in Aluminium Business and better TCRC in
Copper Business, along with improved efficiencies and higher other income.
Copper business with its thrust on multiple value drivers and pass through
model, more than made up for the squeeze in aluminium business margins in the
face of unprecedented cost pressures. A sharp rise in coal costs and crude
prices severely impacted the margins of aluminium business, which performed
creditably showing enormous resilience in such challenging times.
OPERATIONAL HIGHLIGHTS:
This year
witnessed highest ever production of aluminium in the history of the company.
The focus on producing more metal through asset sweating and through
de-bottlenecking at Renukoot and return to normalcy after last year’s
production setback at Hirakud helped the company produce 574 KT, almost 36 KT higher
than previous year’s production of 538 KT of hot metal.
Aluminium sales at
Rs. 90370.000 Millions were up 14%, on the back of better realization and
higher sales volumes.
The other
proactive measures taken to maximize revenue were
1. Higher special
Alumina sales despite lower feedstock availability due to captive consumption
2. Focus on
domestic sales to increase realizations. The EBIT margin of the Aluminium
business continues to be amongst the highest relative to domestic and global
peers, which underlines their strategic thrust and commitment to combine cost
leadership and portfolio de-risking.
The Copper
smelting business delivered yet another sterling performance. The sales
increased by 11% to Rs. 175600.000 Millions on the back of higher LME,
by-product prices and improved product mix. The PBIT registered an even
impressive growth of 33% despite rising cost pressures underpinning the
robustness of the business model. The PBIT stood at Rs. 8020.000 Millions as
compared with Rs. 6020.000 Millions in FY11.
NOVELIS:
Robust numbers in
a year fraught with multiple challenges stemming out of macroeconomic
uncertainty especially in the Novelis’ core markets viz US and Europe.
NOVELIS REGISTERED
• Net income,
excluding special items, of $ 218 million, up 6% YoY.
• Adjusted EBITDA
of $ 1.053 billion, down 2% YoY.
• Record Free Cash Flow before Capex of $ 614
million.
• Solid Liquidity of $ 1.021 billion.
Despite economic
uncertainty driving slightly lower shipments in fiscal 2012, their solid
business model, good cost management and focus on premium products allowed them
to report a record EBITDA per tonne of $ 371 for the year – over 100% increase
in last 3 years.
Shipments of
aluminum rolled products totaled 2,838 kilotonnes for fiscal 2012 compared to
shipments of 2,969 kilotonnes for fiscal 2011. The decrease in shipments was
primarily a result of customer destocking due to economic uncertainty and
continued weakness in the Company’s electronics business. Floods in Thailand and
decline in fortunes of Electronic consumer goods market impacted the overall
volumes in Asia.
Net sales for
fiscal 2012 were $ 11.1 billion, a 5 percent increase compared to the $ 10.6
billion reported last year, mainly the result of favorable conversion premiums
across all regions and an increase in average aluminum prices compared to the
same period last year.
This performance
is a testimony to their ongoing and unwavering commitment to cost reduction,
improvements in manufacturing, operational efficiency, restructuring
initiatives; and product mix rationalization along with successful negotiation
of more favourable contract terms with major customers.
The Company’s
management have recently taken some initiatives which will improve its
competitive position; these include the divesture of three foil plants in
Europe and closure of the Saguenay sheet mill in Canada.
ADITYA BIRLA
MINERALS
FY12 was a
challenging year for Aditya Birla Minerals, the Company’s 51% own subsidiary on
several counts.
• The realizations
suffered on account of 10.5% appreciation of Australian Dollar vis-à-vis USD.
Even though average copper prices during FY12 were slightly higher than the
previous year in USD terms, prices were weaker in terms of Australian Dollar.
• There was a
decline in the mine grade at Nifty. While this was in line with the mining
plan, it did affect the output.
• And third, even
though Mt Gordon operations were taken out of care and maintenance during the
year, the ramp up fell short of what they would have liked it to be.
Against the
backdrop of these varied challenges, the company delivered a respectable
performance. Overall copper production was maintained at the previous year’s
level despite output from Nifty mines suffering due to lower grade.
The consolidated
revenue at A$ 496 million was 7% higher than in the previous year. The Company
continued its various initiatives on cost rationalization and operational
efficiencies, which largely offset the continued inflationary pressures that
the Australian resource industry has been facing. Total site cost at Nifty was
almost
maintained at last
year’s level although the cost per ton increased on account of lower volumes.
Earnings before interest, depreciation and tax were at A$ 82 million, lower
than the level of A$ 132 million in the previous year.
Their safety
record today is above the industry benchmark. This is possible through
continuous safety awareness initiatives and through review and upgrade of the
Occupational Health and Safety policies and procedures with particular focus on
training.
Fundamentally, the
future of the copper industry continues to be promising. To ride on these
opportunities, Aditya Birla Minerals continues to invest significantly in
exploration activities at the existing properties and so far has achieved
significant success both in terms of expanding the existing resource and in
identifying new resources. The Company is also on the lookout for other growth
opportunities and is in a position to leverage its strong balance sheet –
indeed, a key strength in these times.
PROJECTS
The Company has
embarked on an aspirational growth path towards which, three new Aluminium
Smelters and two new Alumina Refineries are being set up in the states of Odisha,
Madhya Pradesh and Jharkhand. During the last year, the first-wave projects –
including Utkal refinery and Mahan and Aditya smelters – have progressed
significantly, notwithstanding extremely challenging local conditions. These
projects are getting ready for commissioning in near future.
These
state-of-the-art facilities are designed to have an extremely attractive cost
structure and are based on captive bauxite / coal mines integration structure.
Together with the Aditya refinery and Jharkhand smelter project in the second
wave, these projects will treble Hindalco’s aluminium capacity to 1.7 million
tonnes.
CORPORATE
The Standalone
basic and diluted Earnings Per Share were at Rs. 11.7 per share in FY12 as
compared with Rs. 11.2 in FY11. The Consolidated EPS was Rs. 17.7 per share as
compared with Rs. 12.8 per share last year.
BUSINESS
PERFORMANCE REVIEW:
ALUMINIUM BUSINESS
INDUSTRY REVIEW
Global economic
growth slowed after a brief consolidation phase amidst fear of sovereign
defaults. The Greece crisis and related problems with other countries not only
affected the Euro zone but also the rest of the world, including India.
A tightening
monetary environment across emerging markets especially in China and India clamped
the growth trajectory; in the process, severely impacting the end user demand
across the sectors. The growing uncertainty in Europe that prompted ECB’s
liberal stand and subsequent enhanced liquidity in the financial system did
raise some recovery hopes in the interim, but risk aversion episodes in the
financial markets have continued at a recurring frequency.
China, the
dominant global commodity driver too is showing signs of slowing down, which
has implications for demand for most commodities. as the macro policies aimed
at inflation control showing their impact thus propelling the commodity
downward spiral towards the end of the year.
The above factors
have caused a steep decline in prices of many commodities, including Aluminium.
The global aluminium inventory, including the off-exchange stocks, has been
estimated at over 10 million tonnes, which has been an additional overhang on
the prices.
Amidst the weak
global environment and certain country-specific challenges, India’s economic
growth also moderated with GDP growing by 7.1% in comparison to 8.3% in the
previous financial year. While there was slower consumption growth, investment
recorded a sharp slowdown. Average inflation at 9% remained high during the
year. This led to policy interest rate hikes by RBI which further deteriorated
the domestic investment scenario. The Indian rupee weakened sharply in the
second half of FY11-12 as current account deficit widened and capital inflows
reduced.
ALUMINIUM DEMAND AND MARKET:
In CY 2011, the
world aluminium consumption stood at around 45 Million tonnes, a strong
increase of around 10% over 41 Million tonnes consumption in CY 2010. The CY11
production stood marginally higher at 45.6 Million
tonnes against
production of 42 Million tonnes in CY 10.
As in the past,
China continued to be the global demand driver with Chinese consumption growing
at a robust 16% accounting for almost 43% of the global consumption. India too
witnessed a healthy growth rate growing at
around 9.2%.
However, the surprise in the pack was North American growth; the North American
consumption registered a strong growth of 8.5%. A strong pick up in the demand
from transportation sector (accounting for around 36% of total demand) was the
main driver for this North American consumption, which also showed some pick up
in building and construction activities. The market has also benefitted from
some restocking through the supply pipe-line.
However, this
growth seems to be tapering with global uncertainty playing out, and the recent
growth has been muted in comparison. European consumption that grew at almost
5.5% in CY 11 is expected to be stagnant in the wake of worsening Euro
macroeconomic climate. China too has been showing signs of weariness in demand.
The production
also increased strongly at around 9% - almost matching the consumption with
strong growth from China and the Middle East, which grew at 13% and 26%
respectively. Middle eastern production increased with ramp up of some of the
new capacities; while in China swing smelters came to the fore with improvement
in aluminium LME during CY 2011.
Globally aluminium
inventory continued to remain high as low interest regime continued to
incentivise carry trade with contango still significantly higher than carry
cost. This helped continue the movement of more and more physical aluminium
towards warehouses. As a result, despite the LME remaining depressed, premiums
continued to be high thus supporting the producers to a certain extent.
European, US and
Japan ingot premiums are at record levels; sustained by warehouse financing
deals rather than physical demand.
Power prices
continued to exert upward pressure on the aluminium cost curve, especially in
Europe. Aluminium smelters have been hit hard by recent fuel price increases,
as well as carbon emission costs, which are set to grow further in the coming
years.
Given the pincer
movement of LME and cost pressures, recent times have witnessed several
capacity curtailment announcements in the industry globally; and some of the
players have already stopped production.
The cost push
continued unabatedly on the back of rising fuel and energy costs. Brent crude
oil made the largest gains. This is not surprising given the increase in
tensions between Iran and the rest of the world.
Chinese aluminium
production is to a great extent dependent on imported alumina and in recent
times on even imported bauxite. This demand has been rising strongly in the
past. The fact that Chinese aluminium production will continue to depend on
imported alumina or bauxite. This gains significance importance in the light of
proposed ban on bauxite exports from Indonesia.
Indian smelters
too witnessed a sharp increase in cost of production with sharp rise in the
coal prices. A depreciating rupee too increased the costs related to imported
crude derivatives.
OPERATIONAL REVIEW
On this backdrop,
the Company’s aluminium business operational performance was truly exceptional
and recorded a strong production performance.
ALUMINA
Alumina production
at 1.35 Million tonnes was at the same levels as previous year despite
suffering on account of deteriorating bauxite quality and interruptions in
sourcing of bauxite.
PRIMARY METAL
Primary aluminium production
increased by 7% to 574 KT. This was the highest ever production so far,
achieved through brown field asset sweating and improvement in operating
efficiencies.
VALUE ADDED PRODUCTS (VAP)
The value added
downstream sales grew marginally over the last year.
(Kt) FY12 FY11
Downstream Sales 231 230
FINANCIAL PERFORMANCE
The turnover of
the aluminium domestic business increased by 14 per cent to Rs. 90370.000
Millions vis-à-vis Rs. 79620.000 Millions in the previous year, on the back of
higher metal volumes, improved product mix and marginally higher average LME.
Profit before
interest and taxes (PBIT) though was marginally lower at Rs. 18220.000 Millions
as compared with Rs. 20040.000 Millions in FY 11 as increased input costs
negated most of the gains from higher realizations. This was a creditable
performance in the face of strong cost inflation in a year that witnessed coal
prices increasing by over 20% and furnace oil going up by as much as 40%. The
company also witnessed cost push on account of declining bauxite quality.
The cost pressures
were to some extent neutralized through multiple initiatives, including:
• Optimization of the sales mix,
• Higher sale of special hydrate / alumina,
• Continuous improvement in efficiencies.
The sustainability
of the company’s profitability is reflected in healthy EBIT margins of 20%
despite these adversities. Thanks to the multiple initiatives taken in the last
few years, Hindalco’s operations remain amongst the lowest on the global cost
curve – notwithstanding the India specific incremental cost pressures that have
been experienced. Hindalco also has the most profitable Aluminium operations
among global peers in terms of EBITDA margins.
ALUMINIUM OUTLOOK:
In 2012, aluminium
demand is expected to increase at around 5% to around 47 Million tonnes. As in
the recent past, China and India would lead Asia’s demand growth, which is
expected to grow at around 8% this year. This global growth rate though
significantly lower than close to double digit growth rate in CY 2011 is still
in line with recent growth trends. Elsewhere, North America is expected to grow
at a healthy 4-5% rate, while Europe having lost the way is expected to
register a negative growth rate. Of late concerns over slower growth in China,
and the debt crisis in the euro zone have cast their shadow on the market.
India too has been mired with several issues and has slowed down. Despite all
these, the physical demand continues to remain robust.
In contrast to the
uncertain short-term outlook, the medium term prognosis is good and over long
term aluminium prospects seem bright especially on the back of growing demand
from emerging economies. Emerging economies’ demand is expected to ride on
growing urbanization and changing demographic preferences.
In India, the
demand will continue to increase as the country builds its power infrastructure
and aluminium being the preferred conductor. The demand growth shall continue
from packaging, automobile, construction (increased usage) electronics (cell
phone, laptop bodies) etc and this will continue to keep the growth rate high.
The Global demand
outlook for FRP (Flat rolled products) is extremely bullish with rising demand
from automobile segment (with increased emphasis on weight reduction). This
segment in the recent past has witnessed strong growth with regulatory
amendments advocating stress on high fuel efficiency vehicles and aluminium
being the preferred choice to reduce weight of these vehicles.
With technological
advances, this trend is fast catching up as more and more, higher end cars are
being made out of aluminium. The demand from other high end FRP products and
beverage cans too is expected to see a sharp pull especially from the emerging
markets. All this augur well for the industry in general and Novelis in
particular.
The long term
fundamentals for Aluminium are, thus, strong with its emergence as an eminent
metal with applications touching several aspects of human life.
Coming to the
supply side of the global Aluminium Industry, many global players have
announced capacity curtailments as mentioned earlier. China, India and the
Middle East will be the focus of capacity additions in the coming years. In
China, however, smelters will be challenged by the issues in sourcing alumina /
bauxite, especially considering the recent restrictions on bauxite export from
Indonesia.
Current
projections suggest that the global industry supply will continue to exceed the
demand in the next couple of years. The warehoused inventory is likely to be
unwound only gradually as the low interest rate regime in the developed world
is expected to continue for some years. The physical market tightness and high
premia are, therefore, likely to continue. Based on considerations of the cost
curve, LME should eventually move higher than the current levels, though the
near-term prospects remain subject to the global macroeconomic environment and
the risk aversion episodes in the financial markets.
BUSINESS OUTLOOK
The Company has
successfully demonstrated benefit of integrated approach with low cost upstream
operations and significant abilities and reach in downstream business. The
robustness of Novelis’ de-risked business model by virtue of its geographic
spread – strong presence in emerging markets, product portfolio – with a strong
proportion of recession proof and yet high potential beverage cans in the
product mix and focused approach to leverage the status of preferred vendor to
global auto majors have withstood these uncertain times. Hindalco’s aggressive
expansion programme has made a significant headway, despite tough ground
conditions at its project locations.
GREENFIELD
PROJECTS
Greenfield
Projects have made significant progress during the year despite tough ground
conditions at the project locations.
• UTKAL ALUMINA INTERNATIONAL LIMITED (UAIL):
The construction
of the alumina refinery, along with a 90 MW captive co-generation plant is in progress
at UAIL, a 100% subsidiary of the Company. The output from UAIL would be
sufficient to feed alumina to the Mahan and the Aditya Smelters.
• MAHAN ALUMINIUM PROJECT:
This 359 KTPA
Aluminium Smelter, along with 900 MW CPP, is coming up in Bargwan, Madhya
Pradesh. The project is on the verge of commissioning.
Mahan Aluminium
project and Utkal Alumina project are now close to the stage of commissioning.
These projects will re-define Hindalco’s aluminium business since all these
projects will have a world beating cost structure.
The Group of
Ministers constituted by the Government of India to consider environmental and
developmental issues related to coal mining etc, has reported to have
recommended granting of forest clearance by the Ministry of Environment and
Forest [MoEF] for Mahan Coal block on certain conditions.
• THE ADITYA
ALUMINIUM AND REFINERY PROJECT:
A 359 ktpa,
Aluminium smelter along with a 900 MW captive power plant, identical to the
Mahan Project, is coming up in Odisha. The project is slated for completion in
2013. A coal block has been allotted for this project jointly with Mahanadi
Coal Fields Limited and Neyveli Lignite Corporation Limited. Alumina Refinery
along with a cogen plant, is also coming up.
• THE JHARKHAND ALUMINIUM PROJECT:
Aluminium smelter
along with a captive power plant is coming up in Sonahatu, Jharkhand. The land
acquisition process has already begun. For this project the Tubed coal mine has
been allotted to the project jointly with Tata Power.
BROWNFIELD PROJECTS:
There were
important developments in India w.r.t. the Company’s strategic goal of higher
VAP proportion.
The Hirakud FRP
project has made a significant progress. This project, which involved
relocation of some equipments from a closed facility of Novelis, will be the
first and the only facility that will have the capability to produce canbody
stock in India. This facility will take Hindalco’s FRP play on a higher plateau
in terms of capability and profitability in the coming years.
NOVELIS:
After a
spectacular transformational turnaround, Novelis is now in the consolidation
phase with some exceptionally value accretive expansion plans that would enable
it to build on this solid foundation. All of their major strategic expansions
in Brazil, South Korea and the United States are progressing well. They have
also announced their entry into China with a plant that will initially focus on
automotive sheet finishing capabilities, solidifying their global automotive
leadership position.
Projects in Brazil,
Korea and US are on schedule. FY12 was the first year in Novelis’ history when
its capex crossed $0.5 billion. It is planning to raise the spend to $0.65-0.70
bn in the current fiscal. The capex initiatives of Novelis have a clear tilt
towards emerging markets, auto industry applications and recycling – which are
aligned to
the key trends in
Aluminium industry globally and will place Novelis in a very strong position to
benefit from these trends as they evolve further in future.
Novelis invested
in major recycling initiatives in all four operating regions, including
advanced equipment and technology to process diversified scrap inputs, which
will enable the company to achieve recycled content of 50% in its products by 2015.
COPPER BUSINESS REVIEW
Global Refined
copper consumption continued to grow albeit at a modest rate, after a sterling
show in CY 10. Consumption rose to a level of 19.8 million tonnes in CY 11
clocking a growth of around 3% over CY 10.
As with the most
metals China continued to be the major demand driver, growing at around 8% in
2010. The only other region that witnessed reasonable growth was North American
region, which grew at 3%.
Rest of the world
largely ran out of steam. The growth rate in Asia, excluding China slowed down
sharply with near stagnant growth with consumption at 1.8 Mn tonnes. While
Western Europe, Japan and Latin America slowed down marginally.
Global refined
copper production recorded a growth of 4% in CY11 over CY 10 after lagging
behind consumption for almost 3 years. As a result, deficit declined
marginally.
The refined copper
prices remained at elevated levels during most part of the CY11, with average
prices remaining at around 8,800 $/t levels in CY 11 - over 15% higher as
compared with previous year’s average. With emergence of commodities as an
asset class, copper prices are also influenced significantly by the fund flows
and financial market sentiment, besides the demand-supply dynamics. In 2012,
copper prices have softened to some extent reflecting the overall macroeconomic
situation.
The treatment and
refining charges (TC/RC) for the CY 2011, were better than CY 10, as a slowdown
in demand provided a window of opportunity to the custom smelters. In CY 11,
TC/RC were 20% higher than CY 2010 benchmark.
Spot TcRc showed a
significant volatility throughout the year partly on account of natural
calamities such as earth quake in Japan followed by Tsunami, Chilean earth
quake and other geo-political issues affecting market sentiments. The smelters
also suffered on account of incessant cost push primarily driven by rising
energy costs.
BUSINESS PERFORMANCE:
Copper business
faced two critical challenges during the year. First related to input cost
pressures, especially the sharp increase in the cost of coal versus the
previous year. Secondly, there is a declining trend in the grade of copper
concentrate. Given the global dynamics in the copper mining industry, it was a
challenge to secure high-quality copper concentrate, necessitating use of
low-grade, high-impurity concentrates.
Despite the latter
factor, copper production at Dahej (330 kt) was largely maintained at the
previous year’s level. The Tc/Rc for the year was marginally better and their
strategic exposure to spot TC/RC also enabled us to improve the margins.
Further, the
Business leveraged the multiplevalue- driver model that it has cultivated
consciously. This meant deriving more value out of the non-traditional
value-drivers, including DAP, Selenium, and waste-to-wealth initiatives such as
sale of gypsum and slag. Operational efficiencies also continued to improve. On
the back of all
these factors,
Copper business delivered the highest ever profitability in FY12.
Today, the Company’s
Dahej operation ranks in the top quartile of the Global smelter cost curve and
has become a much more robust, predictable and globally competitive business.
COPPER FINANCIALS:
The strong rise in
LME coupled with improved product mix led to higher revenues despite marginal
decline in volumes. However, 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 for co-products.
As a result of
higher TC/RC, improved product and market mix, and better operating
efficiencies, copper business delivered a robust performance and recorded a 33%
higher EBIT as compared with previous year. The EBIT for the year stood at Rs.
8020.000 Millions a Rs. 2000.000 Millions increase over previous year’s EBIT.
COPPER OUTLOOK:
The global refined
copper demand is expected to increase by around 3 % in CY2012. Long term demand
for copper is expected to be strong on the back of infrastructural demand from
India, China and moderate demand growth from the western world.
Indian refined
copper consumption is expected to remain subdued in the short-term given the
industrial slowdown amidst inflationary pressures, high interest rates and weak
investment climate. The annual consumption growth is expected to be around 4%
with growth in power, automobile and manufacturing sector. The long term
fundamentals, however, are strong and the copper consumption is expected to
increase with renewed thrust on power sector reforms and urban housing.
In the last few
years, the trend in TC/RC was subdued. However, with some of the large mining
projects coming on stream, the trend is likely to turn in the next 1/2 years,
which augurs well for the Company’s Copper smelting operations at Dahej.
FINANCIAL REVIEW AND ANALYSIS:
The Company’s
Consolidated Revenue at Rs. 808210.000 Millions has been the highest ever, a
growth of 12 % Year-on-Year, aided by better product mix and depreciation
Rupee. Profit before depreciation, interest and taxes stood at Rs. 89730.000
Millions as against Rs.84410.000 Millions in FY11.
For the year ended
March 31, 2012, Standalone revenue crossed the Rs. 250000.000 Millions mark and
stood at Rs. 265970.000 Millions driven by higher volume and realization.
In FY12, the
Company’s Net profit increased by Rs. 1000.000 Millions to Rs. 22370.000
Millions. PBITDA for FY12 stood at Rs. 37210.000 Millions as against Rs.
35020.000 Millions in FY11. FY12 improvement was despite adverse impact of
input cost pressures, especially coal and energy related.
Consolidated Net
profit stood at Rs. 35580.000 Millions. Net profit attributable to the
shareholders increased to Rs. 33970.000 Millions, up by 38% over FY11. Profit
before depreciation, Interest and taxes stood at Rs. 89730.000 Millions as
against Rs. 84410.000 Millions in FY11. The underlying performance of the
current year sets a new record, reflecting the inherent strength of the
Company’s low cost business model, operational excellence, superior product mix
and a balanced and de-risked portfolio.
AWARDS AND RECOGNITIONS
Several accolades
have been conferred upon the Company, in recognition of its contribution in
diverse fields. A selective list:
1. Hindalco:
CII-EXIM Bank Award 2011 (Commendation Certificate) for Business Excellence.
2. Birla Copper
Dahej: IMC Ramakrishna Bajaj Quality Award 2011 (Commendation Certificate).
3. Renukoot:
Non-Ferrous Best Performance Award 2010-11 by the Indian Institute of Metals,
Non-Ferrous Division.
4. Birla Copper
Dahej: Environment Protection Award 2011, for NP/NPK Complex Fertilizer Plants,
including captive Acids, presented by the Fertilizer Association of India.
5. Renukoot:
National Energy Conservation Award 2011, (2nd Prize), presented by the Ministry
of Power, Government of India.
6. Renukoot:
Greentech Environment Platinum Award 2011 for outstanding achievement in
Environment Management, presented by the Greentech Foundation, New Delhi.
7. Renusagar:
Golden Peacock National Quality Award 2011 in the Service category.
8. Renusagar:
Greentech Gold Safety Award 2011 in the Power Plant category for exemplary
efforts towards occupational health and safety, presented by Greentech
Foundation, New Delhi.
9. Renusagar:
Greentech Environment Excellence Gold Award.
10. Birla Copper
Dahej: Greentech Environment Gold Award.
11. Hirakud
Smelter: Odisha State Safety Conclave Award 2011
12. Hirakud Power:
CII Odisha State Award (1st Prize) for best practices in Environment, Health, Safety
(ESH) for
2011.
13. Belgaum
Alumina Works: Government of Karnataka State Export Excellence Award for the
years 2009-10 and 2010-11, presented in March 2012.
14. Quality Circle
Teams of Renukoot, Renusagar, Birla Copper Dahej and Hirakud Complex :National
Quality Convention 2011 for Excellence and Distinguished performance awards.
15. Durgmanwadi,
Chandgad and Lohardaga Mines Division: Awards at regional / state level, during
the Mines, Safety Productivity Week, Environment Conservation Week and other
such programmes.
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 NINE MONTHS ENDED 31ST
DECEMBER, 2012
(Rs. in millions)
|
Sr. No. |
Particular |
Quarter Ended |
Nine Month Ended
|
|
|
|
|
31.12.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.12.2012 (Unaudited) |
|
1. |
Income from
Operations |
|
|
|
|
|
Net Sales |
67899.000 |
61147.100 |
188687.200 |
|
|
Other Operating Income |
818.200 |
488.100 |
1944.600 |
|
|
Net Sales/Income
from Operations |
68717.200 |
61635.200 |
190631.800 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost of Material Consumed |
43522.600 |
46188.000 |
126203.000 |
|
|
Purchase of Stock In Trade |
-- |
-- |
3.800 |
|
|
Change in Inventories of Finished Goods, Work-In-Progress
and Stock In Trade |
3047.800 |
(6203.400) |
(701.000) |
|
|
Employee Benefits Expenses |
3082.300 |
3129.000 |
9113.100 |
|
|
Power and Fuel |
7548.600 |
8064.900 |
23186.800 |
|
|
Depreciation and Amortization Expenses |
1883.500 |
1727.500 |
5315.800 |
|
|
Other Expenses |
5695.300 |
5303.600 |
17221.200 |
|
|
f) Total |
3937.100 |
3425.600 |
10289.100 |
|
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
3937.100 |
3425.600 |
10289.100 |
|
|
|
|
|
|
|
4. |
Other Income |
3180.800 |
1323.700 |
7518.800 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
7117.900 |
4749.300 |
17807.900 |
|
|
|
|
|
|
|
6. |
Interest |
1689.800 |
278.600 |
2783.100 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
5428.100 |
4470.700 |
15024.800 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
5428.100 |
4470.700 |
15024.800 |
|
|
|
|
|
|
|
10. |
Tax Expense |
1092.900 |
881.900 |
2853.100 |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
4335.200 |
3588.800 |
12171.700 |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
4335.200 |
3588.800 |
12171.700 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
1914.800 |
1914.800 |
1914.800 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic |
2.26 |
1.87 |
6.36 |
|
|
b) Diluted |
2.26 |
1.87 |
6.36 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
1141135992 |
1142339940 |
1141135992 |
|
|
- Percentage of Shareholding |
59.60% |
59.67% |
59.60% |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
613797188 |
613797188 |
613797188 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100.00% |
100.00% |
100.00% |
|
|
- Percentage of Shares (as a % of the Total Share Capital of
the Company) |
32.06% |
32.06% |
32.06% |
|
Particulars
|
Quarter
Ended 31.12.2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
9 |
|
Disposed of during the quarter |
9 |
|
Remaining unresolved at the end of the quarter |
Nil |
SEGMENT-WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER AND NINE MONTHS ENDED
31ST DECEMBER, 2012
(Rs. in millions)
|
Sl. No. |
|
Particulars |
Quarter Ended |
Nine Months
Ended |
|
|
|
31/12/2012 |
30/09/2012 |
31/12/2012 |
||
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aluminium |
22154.500 |
21049.000 |
63829.300 |
|
|
|
Copper |
46608.400 |
40656.700 |
126986.200 |
|
|
|
|
68762.900 |
61705.700 |
190815.500 |
|
|
|
Less : Inter Segment Revenue (Net of Excise) |
(45.700) |
(70.500) |
(183.700) |
|
|
|
|
|
|
|
|
|
|
Revenue from
Operations |
68717.200 |
61635.200 |
190631.800 |
|
|
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aluminium |
2064.000 |
1698.000 |
6463.200 |
|
|
|
Copper |
2252.000 |
2085.300 |
5094.400 |
|
|
|
|
4316.000 |
3783.300 |
11557.600 |
|
|
|
Less: Finance Costs |
(1689.800) |
(278.600) |
(2783.100) |
|
|
|
|
2626.200 |
3504.700 |
8774.500 |
|
|
|
Add: Other unallocated Income net of unallocated Expenses |
2801.900 |
966.000 |
6250.300 |
|
|
|
|
|
|
|
|
|
|
Profit before
Tax |
5428.100 |
4470.700 |
15024.800 |
|
|
|
|
|
|
|
|
3 |
|
Capital Employed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aluminium |
298214.800 |
288501.800 |
298214.800 |
|
|
|
Copper |
57648.100 |
61985.100 |
57648.100 |
|
|
|
|
355862.900 |
350486.900 |
355862.900 |
|
|
|
Unallocated/ Corporate |
231484.500 |
350486.900 |
355862.900 |
|
|
|
|
|
|
|
|
|
|
Total Capital Employed |
587347.400 |
577102.900 |
587347.400 |
NOTES
- 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 made for an estimated amount of Rs.
2580.000 Millions (including Rs. 130.000 Millions and Rs. 390.000 Millions
for the current quarter and nine months respectively)
- 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 (AO) has
framed the assessment by making adjustment, inter alia, amounting to Rs.
2700.000 Millions to total income on account of purported arms length fee
of Corporate Guarantee provided to foreign banks for granting loan to
wholly owned subsidiary AV Minerals B.V. at Netherlands. Based on expert
view, no provision is deemed necessary and the Company has filed an appeal
before Hon’ble ITAT.
- As per transfer pricing order dated 30th
January, 2013 for AY 2009-10, following past precedence, the Transfer
Pricing officer (TPO) has made adjustment of Rs 10630.000 Millions, inter
alia, by imputed guarantee fee of 11.84% and 9.79% on two corporate
guarantees provided by the Company to foreign banks for granting loan to
wholly owned subsidiary AV Minerals B.V. at Netherlands. As of now we have
not received any demand. The Company has not made any provision for the
reasons as stated in paragraph 2 above.
- Other Income for the quarter and also for nine
months ended 31st December, 2012 includes Rs.1440.000 Millions
income of non-recurring nature.
- 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 Friday, 8th February, 2013. Limited
Review has been carried out by the statutory auditors of the Company.
WEBSITE DETAILS
BUSINESS DESCRIPTION:
Subject is an India-based company. The Company operates in two segments: aluminum and copper. It is a company of the Aditya Birla Group. Aluminum comprises of hydrate and alumina, aluminum and aluminum products. Copper comprises of continuous cast copper rods, copper cathode, sulphuric acid, DAP and Complexes, gold and silver. The Company’s aluminium units across India encompass the entire gamut of operations, from bauxite mining, alumina refining, aluminium smelting to downstream rolling, extrusions and recycling. The Company’s projects include Greenfield projects and Brownfield projects. Greenfield expansion projects include Mahan Aluminium Project in Madhya Pradesh; the Aditya Alumina and Aluminium Project and the Utkal Alumina Project, both in Orissa, and the Jharkhand Aluminium Project. Subject Brownfield expansion projects include primary metal in Hirakud and alumina capacities in Belgaum and Muri. For the fiscal year ended 31 March 2010, Subject revenues decreased 8% to RS610.45B. Net income applic to common totaled RS39.25B, up from RS4.84B. Revenue reflect a significant decrease in income from Aluminium segments and a fall in income from others business segment. Net income was offset by a significant fall in trade purchase, lower manufacturing and other expenses and a decrease in depreciation expenses.
BOARD OF DIRECTORS:
MADHUKAR MANILAL
BHAGAT - NON-EXECUTIVE INDEPENDENT DIRECTOR
Mr. Madhukar Manilal Bhagat serves as the Non-Executive Independent Director of Subject. He holds B.Com, A.C.I.I (London), A.I.I.I. Passed Part- I of Fellowship Exams of Chartered Insurance Institute, London, Passed Intermediate Exam of Chartered Institute of Secretary, London. He is a Director of Aditya Birla Insurance Brokers Limited, Zenith Exports Limited, VCK Share and Stock Broking Services Limited, VCK Capital Market Services Limited
RAM CHARAN -
NON-EXECUTIVE INDEPENDENT DIRECTOR
Mr. Ram Charan is Non-Executive Independent Director of Subject. Mr. Ram Charan has an acclaimed engineering degree and holds a MBA degree and a Doctorate from Harvard Business School. He has also served as a faculty of Harvard Business School.
JAGDISH KHATTAR -
NON-EXECUTIVE DIRECTOR
Dr. Jagdish Khattar has been appointed as the Non-Executive Director of Subject. He has started his career as an IAS officer. He has also served as a Chief Executive Officer and Managing Director of Maruti Suzuki India Limited (formerly Maruti Udyog Limited) from 1999 to December, 2007.
CHAITAN M. MANIAR -
NON-EXECUTIVE INDEPENDENT DIRECTOR
Mr. Chaitan M. Maniar serves as the Non-Executive Independent Director of Subject. He is an Advocate and Solicitor. He holds B.Com, M.A., L.L.B. He has been a Director of Foods and Inns Limited, Godfrey Phillips India Limited, Gujarat Ambuja Exports Limited, Varun Shipping Company Limited, Indo-Euro Investment Company Limited, Indian Card Clothing Company Limited, Multi Commodity Exchange of India Limited, Vadilal Industries Limited, Pioneer Investcorp Limited, Sudal Industries Limited, TCPL Packaging Limited, Machine Tools (India) Limited, MCX Stock Exchange Limited, Financial Technologies India Limited, Utkal Alumina International Limited.
NEWS
PRESS RELEASE
HINDALCO'S ADITYA ALUMINIUM
PROJECT: FINANCIAL CLOSURE ACHIEVED
17 September 2012
Hindalco Industries Limited has achieved financial closure for its
Rs.131950.000 Millions greenfield Aditya Aluminium smelter project at Lapanga
in Odisha. The project has been funded in a debt equity ratio of 75:25 with a
debt component of Rs.98960.000 Millions. The debt carries a tenor of 12.5 years
and is priced at the SBI base rate plus 125 bps, which presently works out to
11.25 per cent p.a. SBI Capital Markets and IDBI Bank led the debt syndication,
which saw a huge participation from almost the entire banking community with a
total of 28 commercial banks and financial institutions participating in the
transaction.
At the rupee loan agreement signing held in Bhubaneswar on 17th
September 2012, Mr. Praveen Maheshwari, CFO, expressed gratitude for the enthusiastic
support lent to the project by the participating lenders. He added that at a
time when most companies are shying away from committing capex, Hindalco has
chosen to stay its course and is delivering on its long term strategic
objective. Mr. Maheshwari further stated that development of Aditya Aluminium
Project is a strategic step forward for Hindalco Industries, towards
achievement of its long term vision and post stabilisation this plant with a
proposed annual aluminium production capacity of 359,000 tonnes and backed by
captive power plant of 900 MW will be amongst the lowest cost producers
globally.
Mr. Alphonso Richard Das, President Finance at Hindalco, said that
recently the company has successfully tapped both the domestic bond market as well
as the loan market to meet its financing needs. In both cases, it has achieved
benchmark financing terms. The pricing of this loan once again demonstrates
Hindalco's credit profile and the strong sense of partnership that it enjoys
with the lending community.
Ms. Arundhati Bhattacharya, Managing Director of SBI Capital Markets,
said that the amount raised is a demonstration of the confidence that the
banking community has shown in Hindalco and the manufacturing industry in
general. The rupee term loan facility got oversubscribed 2.25 times even as
this facility represents one of the largest debt syndications launched in the
recent times.
Speaking during the signing ceremony, Ms. Mythili B, Chief
General Manager, IDBI said investment in big manufacturing projects like these
will not only help in the development of the surrounding areas, but also revive
the investor confidence in Indian markets.
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 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. 53.33 |
|
|
1 |
Rs. 82.55 |
|
Euro |
1 |
Rs. 70.10 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
75 |
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.