Q4 FY11 Results
Net sales at Rs.6, 846 crore in Q4FY11 were up 27% over Q4FY10. Better geographic and product mix along with higher LME and better copper volume have been the main performance drivers.
The adverse impact of rupee appreciation, higher coal and carbon cost and lower TcRc were largely compensated by improved operating efficiencies and higher value-added by-product credit in Copper Business.
Other Income was higher by Rs. 27 crore on the back of improved treasury yield and larger corpus, post return of capital from Novelis.
Employment cost rose by around Rs. 60 crore mainly due to one-time costs arising on actuarial provisioning of retiral funds and long term wage settlement at some plant locations.
EBITDA in excess of Rs. 1,000 crore, despite steep input cost escalations and fall in TcRc was driven by better realisation, improved mix and volume improvements from asset sweating and recent Brownfield expansions. Profit before tax is higher by 17% at Rs. 787 crore. Net profit after tax but before tax adjustment for earlier years is at Rs. 697 crore against Rs. 551 crore in Q4FY10.
Business Segment Results
Of the total quarterly revenues of Rs.6,846 crore, Aluminium Business contributed Rs.2,211 crore with an EBIT of Rs.562 crore compared to Rs. 614 crore in Q4FY10. The results would have been better, but for increased input costs (especially coal), appreciating rupee and other one-timers.
In the Copper Business, revenues for the quarter were higher at Rs.4,637 crore, up by 38% from Rs 3,361 crore in Q4FY10, mainly on account of higher volume, higher copper LME and by-product credits.
The benefits of the marked improvement in operational efficiencies were partially offset by lower TcRc and energy cost. Despite these factors, EBIT of Rs.206 crore was 61% higher over corresponding quarter of the previous year.
Revenues for the year cross the USD 5 Billion mark For the year ended March 31, 2011, net sales at Rs.23,859 crore grew by 22%. Highest ever copper volumes, better product and geographic mix, by-product credit and higher realisation on account of higher commodity prices impacted the company"s performance in a positive way.
Input cost pressure, lower TcRc and one-timers associated with Hirakud disruption constrained the superior operational performance.
Other Income at Rs. 317 crore was higher on account of better yields and higher treasury corpus, post return of capital by Novelis.
Interest was lower due to lower working capital borrowing coupled with lower international interest rates.
Mahan Financial Closure
The Company is setting up a Greenfield Aluminium Smelter Project in Madhya Pradesh (Mahan Project) with a capacity of 359,000 TPA of aluminium supported by 900 MW captive power plant at a cost (including financing cost) of Rs. 10,500 crore.
The Company has successfully achieved the financial closure of Mahan Project with the signing of Common Rupee Loan Agreement for Rs. 7,875 crore on March 30, 2011. This constitutes the entire
The Company"s performance in FY11, despite the many challenges and one-timers, has been remarkable. Continuous efficiency improvements and free cash flow maximization have been the Company"s key focus. Spiraling input costs, especially energy prices, pose a serious challenge until Greenfield projects come on stream.
The integrated nature of operations coupled with lien over resources remains the cornerstone of the Company"s strength to grow. Organic growth projects under execution have made significant progress and are adequately funded to maintain momentum.
The financial closure and the increasing visibility of the projects have further increased the confidence and optimism about a quantum leap in the growth of the Company.