Hindalco Industries Ltd Record Annual Revenues at Rs. 18,313.0 Crores

Hindalco Industries Ltd, the flagship Company of the Aditya Birla Group has reported a sterling performance for the Quarter ending March 31, 2007. Net sales at Rs. 4748.9 Crores is up by 30% over Q4 of FY06 (Rs. 3657.4 Crores). Profit before Tax rose by 20% and Profit after Tax increased by 15% vis-?-vis Q4 of FY06.

Driven by strong Aluminium prices on the LME and an improved product mix on account of higher sales volume of value added products, Aluminium business revenues extended from Rs 1,726.3 Crores to Rs 2,042.4 Crores, an increase of 18 %. Despite strong inflationary pressures, Profit before interest and tax mounted from Rs 713.1 Crores to Rs 790.2 Crores, up 10.8%.

Copper business revenues stepped up from Rs 1931.7 Crores to Rs 2711.2 Crores, a rise of 40%. Profit before interest and tax at Rs 136.5 Crores witnessed a growth of 13.6% over the corresponding quarter of the previous year.

FY 2007 Performance

The FY 2007 results have been extremely impressive. Higher Capacity utilization, increased realization and strengthening of operational efficiencies resulted in both revenues and profits surpassing their previous levels. Consolidated Revenues at Rs. 18,313.0 Crores reflected a growth of 61%. The EBIDTA crossed the USD 1 bn. mark for the first time ever at Rs. 4,385.1 Crores. Net profits grew sharply by 55% to Rs. 2564.3 Crores.

Aluminium business revenues stretched from Rs 6042.3 Crores to Rs 7344.4 Crores an increase of 21.5%. Despite strong inflationary pressures, Profit before interest and tax rose from Rs 2128.1 Crores to Rs 2929.2 Crores up 37.6 %.

Copper business revenues doubled to Rs. 10,977.6 Crores from Rs. 5354.2 Crores Profit before interest and tax surged to Rs 517.1 Crores .vis- a -vis Rs 19.3 Crores in FY 06.

Dividend

The Company has paid an interim dividend of 170% for FY 07. Together with the Corporate Dividend Tax of Rs. 24.9 Crores, the total payout on this score was Rs. 202.2 Crores. The Board at its meeting held on date, has decided not to recommend any further dividend and to treat the interim dividend as the final dividend.

A Major Strategic Initiative

The Company has entered into a definitive agreement with Novelis Inc. on 10th Feb 2007 for acquiring all outstanding common shares @ USD 44.93 per share in cash for a total consideration of approx. USD 3.5 Billion.

For this purpose the Company has secured firm commitments of USD 3.1 Billion bridge loan of 18 months against the corporate guarantee of the Company and the balance of USD 450 Million will be financed by the company by way of infusing equity / preferred stock / other securities in its wholly owned subsidiaries. The acquisition will be effected through one or more of its wholly owned subsidiaries.

The acquisition marks a synergistic extension to the Company?s upstream business by way of expanding the Company?s business activities to multiple downstream business, by optimization of the operating assets of Novelis located in different geographical markets catering to a larger consumer base.

The acquisition is subject to various customary approvals including shareholders and Canadian Court approval.

Operational Review

Aluminium

Both alumina and aluminium continued to operate at high utilization levels, above their rated capacities. With the stabilization of the Prebaked Smelter Potline at Hirakud, metal production has risen by 7% to 114,334 MT. The production of Value Added Products i.e. Rolled and Extrusions ascended due to better performance from the rolling plants and the extrusion press set up in FY 06.

Copper

The production of Copper cathodes went up by 22% to 81,460 T in comparison to Q4 of the previous year. Production of value added product CC rods grew 27% to 30,076 T. Sulphuric acid output was up by 8% to 240,860 T. In view of the overall economics, Copper II