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Company : Business Wire 
Monday, May 6, 2002 6:20PM IST (12:50PM GMT)
 
Indo Gulf Corporation Limited Reports Excellent Performance
Fertilizer Business continues to suffer from the Restrictive Govt. Policies
 
Mumbai, Maharashtra, India

HIGHLIGHTS

Turnover Rs. 2706.2 Crores  up by 23.1% 
Tax  Rs. 98.8 Crores  up by 311.5% 
Net Profit  Rs. 302.4 Crores  up by 20.2% 
Export  Rs. 309.9 Crores  up by 262 % 

FINANCIAL PERFORMANCE
Rs. in crores
PARTICULARS 2001-02 2000-01 % Growth 
Net Sales 2706.2 2198.8 23.1 
PBDIT 624.3 538.6 15.9 
Interest 102.4 145.3 -29.5 
Depreciation 120.8 117.6 2.7 
Profit Before Tax  401.2 275.7 45.5 
Provision for Current Tax 98.8 24.0 311.5 
Net Profit  302.4 251.7 20.2 
Provision for deferred Tax 6.2  
Net Profit after deferred Tax 296.2 251.7 16.1 
Equity Capital 225.2 225.2  
Basic & Diluted EPS (Rs) 13.2 11.0 16.1 
Basic & Diluted EPS (Rs) – before deferred tax 13.4 11.0 20.2 
Book Value (excluding deferred tax liability) 87 76 18.4 

Indo Gulf Corporation Limited, an Aditya Birla Group Company, reports impressive results for the year 2001-02. The Company has achieved a sales turnover of Rs. 2706.2 crores, which is higher by 23.1% over the previous year. PBDIT at Rs. 624.3 crores reflects a growth of 15.9% over that of the last year. Net Profit at Rs. 302.4 crores is up by 20.2% over Rs. 251.7 crores achieved last year. This is despite providing for higher current tax at Rs.98.8 crores over Rs.24 crores last year due to moving out of MAT. Its copper business has contributed very significantly to its revenue and earning. The performance of its Fertiliser business continues to be impaired, given the regulatory constraints.

COPPER BUSINESS

Indo Gulf's Copper Division has recorded an impressive sales of Rs. 2238.4 crores, an increase of 32.4% over that of the last year at Rs.1690.3 crores. This is regardless of a reduction of 15.4% in prices due to the fall in LME prices and lower custom duty by 3.5% from 1st March 2001 and 10% with effect from March of this fiscal. The two major factors that have enabled the Division post good results include the expansion of its copper smelter and commendable exports.

The capacity of its smelter has been raised to 150,000 TPA from 100,000 TPA. Its ramp up compares well with the world's best smelters. Exports have increased impressively at 42879.0 MT compared to 10271.9 MT in the last year. Given Birla Copper's world-class product quality and superior customer services, the Company has been able to penetrate deeper into the export markets. Birla Copper is well entrenched in the South East Asian and Middle East markets. It continues to sustain its leadership in the domestic markets as well.

Its precious metal refinery, commissioned last year, produced 7492.5 kg of gold.

The performance of its Di-ammonium phosphate plant (DAP) has been satisfactory. Production of DAP at 299878.0 tonnes is up by 212.4 % compared to 95984.0 tonnes during the last year.

OUTLOOK :

Indo Gulf is cautiously optimistic about its copper business in the domestic market as the year has witnessed a flat demand.

In the export markets of the Middle East, South East Asian regions, China, Korea and Taiwan, there is a perceptible demand-supply gap. In view of its excellent locational advantage, which it can and continues to leverage, Birla Copper is confident of growing further in the export sector.

FERTILIZER BUSINESS

Indo Gulf's turnover in its Fertilizer Division has been maintained.

Production restraints imposed by the Government have and continue to curb asset utilisation. The reduction in the retention price by the Government has severely impinged upon its Fertiliser business. Left with little choice, for its sustainability, the Company has focussed on improved realisation, cost reduction in all areas and enhanced operating efficiencies.

OUTLOOK :

In the fertilizer business, even though its plant is of the most efficiently maintained with significant cost advantage, its growth hinges on the Government policy. Any rational or growth oriented policy on the part of the Government will ensure sustained profitable growth for Indo Gulf.

DAHEJ HARBOUR AND INFRASTRUCTURE LIMITED (DHIL)

The performance of DHIL, the wholly owned subsidiary of Indo Gulf, which owns the jetty of Birla Copper, has been excellent. DHIL has handled a total of 2296982 lac Mt of Cargo in the FY 2001-02, as against 1253235 lac Mt in the previous year.

OVERALL OUTLOOK

In spite of the adverse external environment, Indo Gulf continues to perform exceedingly well in terms of growth in Revenues, Profits and Asset Productivity. However, to ensure its sustainable growth and to keep providing value to its shareholders, Indo Gulf will continue to improve utilization of asset and operating efficiencies relentlessly, while capitalising on the foreseeable upturn in the global macro-economic environment, and hopefully a rationale long-term fertilizer policy.

AWARDA AND HONOURS

The Fertiliser Unit of the Company has recently received following Awards & Honours:-

-- The 'IMC Ramakrishna Bajaj National Quality Award' from the Indian Merchants' Chamber in the Manufacturing Category for the year 2001.
-- The 'Best Corporate Citizen Award' from the PHD Chamber of Commerce & Industry for outstanding contributions/achievements in the field of community development and environment protection.
-- OHSAS 18001 Certification for commitment to health and safety of employees in the Unit.

 
 
 
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