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Hindalco net profit drops 25%

Oct. 23: Hindalco Industries Ltd has reported disappointing results for the second quarter of the current financial year ending September 30 following weak product prices, higher input costs and major power disruptions. The company’s net profit fell 25 per cent to Rs 125.2 crore as against Rs 167.1 crore in the corresponding period of the previous year.

However, net sales were up marginally at Rs 569.7 crore against Rs 557.3 crore while sales volumes were at 63,587 tonnes, a rise of close to 6 per cent over the same period in the previous year.

According to the company, while domestic competition continues to be intense, there are apprehensions that a poor agricultural performance will hit the demand for consumer durables. Prices are expected to be under pressure due to increasing output domestically and discouraging outlook for international prices.

Hindalco, however, pointed out that normalisation of its smelter operations, completion of the brownfield expansion, the ongoing cost reduction and improved operational efficiencies should take it forward.

Raymond net dips

Raymond Ltd has recorded a 15.72 per cent fall in its net profits for the second quarter of the current fiscal ending September 30. Net profits fell to Rs 34.41 crore against Rs 40.83 crore in the corresponding period of the previous year.

The lower profit came amid continued sluggishness in the market. However, the company averred that despite such a trend, net sales of the company for the first half rose 8 per cent to Rs 462.29 crore against Rs 427.13 crore in the previous year and net profit was at Rs 38.72 crore (Rs 36.19 crore).

For the second quarter, net sales were marginally up at Rs 295.59 crore as against Rs 294.99 crore in the second quarter of 2001, chairman and managing director Gautam Singhania said.

Raymond said that revenue from its textile division for the first half registered a growth of 10 per cent in value at Rs 341.22 crore (Rs 310.44 crore) and 8 per cent in volume at 11.3 million metres. Its denim division also registered a growth of 10 per cent in its revenue during the first half. The company is now expanding the capacity of this division to 20 million metres from the present 10 million metres.

The expansion of the first phase of five million metres has already been completed, and the second phase of another five million metres will be completed by end of this financial year.

Raymond had already claimed insurance for loss of its helicopter, which met with a fatal accident last month.

“The consequential loss is adequately insured. The company does not expect any loss when the claim is finally assessed and settled,” a company release said.

The company has signed a memorandum of understanding (MoU) with promoters of Color Plus Fashions Ltd for acquisition of the entire equity holding in the company, which will take place after completing legal, financial and commercial due diligence.

ICI India doubles net

Paint company ICI India Ltd today reported nearly doubling of its net profit to Rs 19.75 crore in the second quarter of the current fiscal when compared with Rs 10.05 crore profit in the same period of the previous year.

Sales, however, dipped marginally from Rs 200.04 crore in July-September 2001 to Rs 199.41 crore in the second quarter of 2002-03, a company statement said here.

Net profit rose 88.9 per cent in first half of current fiscal to Rs 27.88 crore as opposed to a profit of Rs 14.76 crore in the year ago period.

Sales during April-September 2002 were Rs 372.64 crore, as against Rs 377.17 crore in the corresponding period the previous year.

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