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Indal posts record H1 net, sales

Our Bureau

KOLKATA, Oct. 29

INDIAN Aluminium Co Ltd has recorded a gross turnover of Rs 678.5 crore for the six months ended September, 2001. Net profit for the period stood at Rs 59.4 crore.

A statement said the company had achieved the highest-ever half-year sales and profits, despite recession. Higher output from a number of plants, better sales volumes and an improved performance in downstream businesses had been the major contributors, i t said.

For the three months ended September 30, 2001, the company recorded a sales/other income of Rs 342.6 crore. There was an interest outgo of Rs 9.3 crore, while depreciation accounted for Rs 16.2 crore. Indal's profit before tax stood at Rs 39.1 crore. Net profit for the three-month period was Rs 30.7 crore.

Export of downstream products (sheet, foil and extrusions) recorded improvement. However, low alumina price in the global market impacted on exports of standard alumina. Overall export performance, therefore, was lower at Rs. 172.1 crore.

The chemicals business recorded improved production, at both Belgaum and Muri plants. The company effected a change in product mix to counter low international prices of standard alumina. Exports of speciality products increased by 15 per cent, while dom estic sales moved up marginally.

On the metal and power front, both smelters (Hirakud and Alupuram) operated at full capacity with the highest-ever output in certain months. A captive power plant operated at an average PLF of 90 per cent, meeting as much as 91 per cent of the Hirakud sm elter's needs.

In the sheets business, domestic sales went up by 23 per cent with a better product mix and an increase in volume of exports.

``With volatility in commodity markets and recessionary trends in the western world, international prices of aluminium and alumina are likely to remain depressed. Given the current uncertain international political situation, global consumption of alumin ium may not grow as expected'', the statement said.

Indal, it said, would concentrate on growth sectors with high value-added products, while trying for more improvements in terms of costs, operating efficiencies and a focus on new markets.

The Appellate Authority for Industrial and Financial Reconstruction, it may be mentioned, has at a hearing on September 26, approved a draft rehabilitation scheme for revival of Annapurna Foils Ltd (AFL) in which the company held an equity stake of 26.51 per cent. It has subsequently acquired an additional 24.09 per cent in AFL.

MUMBAI: Dr S.K. Tamotia, President and CEO, said the collapse of global alumina price and rising input costs would continue to affect the company's margins. ``There has been an unprecedented increase in input cost of caustic soda,'' he said.

However, the alumina price impact would be offset by the company's sheet and extrusion business.

Aluminium demand would remain soft for the next six months, he said. ``We will see real growth only in the second half of 2002,'' he said.

Indal has achieved highest-ever half yearly sales on profits despite the external environment being challenging, Dr Tamotia said.

However, there are concerns over the US slowdown and its impact on Asia and sluggish growth in domestic industrial activity.

For Indal, sheet would emerge as a key contributor and extrusions to consolidate position further. However, outlook for foil remained challenging, he said.

Indal will focus on value-added products to ensure profitable growth. ``Our strategy would be to leverage synergy gains with Hindalco, sweat existing assets and reduce costs further, improve quality and customer service, improve market position in domest ic and export markets and leverage benefits of recent investments,'' Dr Tamotia said.