Profit after current tax - Rs.1,256 million up 8%
Net Sales - Rs 13,683 million up 7%
Indian Aluminium Company, Limited (Indal), an Aditya Birla Group Company, today announced financial results for the year ended 31 March 2002. The Company recorded a commendable performance with the highest ever sales and profits, despite the challenging market conditions, overall economic slowdown, lower international metal and alumina prices and higher input costs.
Net Sales/Income from Operations for the year 2001-02 increased by 7% at Rs 13,683 million (Rs 12,771 million). Profit after current tax at Rs 1,256 million was the highest ever and 8% higher than previous year (Rs 1,160 million). However, after the Rs.85 million deferred tax charge, the net profit stood at Rs 1,171 million. Exports for the year stood at Rs 3,492 million (Rs3,747 million).
The Board has recommended a dividend of Rs 4.00 per Ordinary Share.
Indal's creditable performance can be attributed to : (1) better manufacturing efficiencies and operational practices; (2) focus on asset utilisation with record production of alumina, metal, power and extrusions; (3) an overall increase in the volume of domestic sales; (4) increased market share across business segments, and (5) record sales and realisation in value-added sheet products.
Annual output from Muri and Belgaum alumina plants was the best ever at 451,850 tonnes registering an increase of 2% over the previous year (442,650 tonnes). A strategic move to increase export of Standard Hydrate yielded higher realisations and to some extent mitigated the impact of falling international price of alumina and rise of caustic soda prices. While domestic sales stood at 95,599 tonnes (110,775 tonnes), export volume of Standards registered a substantial increase of 18% at 199,544 tonnes ( 169,480 tonnes).
Both Smelters at Hirakud and Alupuram operated at full capacity with the best ever output of metal at 44,379 tonnes (43,975 tonnes). There was record generation from the Captive power plant at Hirakud at 543 MU (524 MU) with an average PLF of 92%.
Project work on increasing smelter capacity at Hirakud is moving on schedule. Commissioning is expected to start by second quarter 2002-03 and completed by end of financial year 2002-03. The pre-project activities for augmenting the captive power plant capacity at Hirakud to support the expanded smelter operation have also been initiated, along with development of coal mining block.
Production from the two Sheet plants at Belur and Taloja stood at 68,971 tonnes (57,920 tonnes) with significantly higher output from Taloja, particularly in the high value product segments. Operational improvements with enriched product-mix ensured higher quality while also lowering cost of production. Domestic sales volume at 47,516 tonnes increased by 21% (39,373 tonnes) with a record sale of high value sheet products. Despite global recession, the volume of sheet exports increased 12% at 10,752 tonnes ( 9,601 tonnes).
The Foil & Packaging output was 6,736 tonnes (6,589 tonnes) with a 57% increase in high value converted output. The marketing strategy to focus on value-added product segments with an enriched product-mix yielded better sales realisation.
The Extrusions plant at Alupuram recorded production of 8,134 tonnes, an increase of 12% (7,253 tonnes) and the highest annual output. The unit has improved on its profitability with 14% growth in domestic sales at 7,055 tonnes ( 6,185 tonnes).
MERGER OF ANNAPURNA FOILS LIMITED (AFL)
A merger scheme between Annapurna Foils and Indal was sanctioned by the AAIFR w.e.f. 1 April 2002. The merger process is currently under implementation. AFL's 4,000 tonne capacity foil plant at Kollur, Hyderabad will strengthen Indal's position in the foils segment and provide synergy for future growth and profitability.
Industry analysts are hopeful of the global economic recovery process to begin from mid 2002. The LME price for aluminium metal, currently around US $ 1,400 /tonne is expected to firm up over the second half of 2002 as also the international price of alumina. The major end-use segments such as transport, automobile, packaging, etc., are however, likely to witness a modest growth in 2002. Industrial growth in India during fiscal 2001-02 is expected to be around 3.5% as against 6.5% last year. This slowdown has impacted aluminium consumption in our country, keeping it to a modest 4% during 2001-02.
With the recovery process beginning to show visible signs, Indal will gear up to seize the emerging opportunities in the domestic and regional export markets.