Hindalco's satisfactory performance in Q1

Hindalco Industries, an Aditya Birla flagship, has reported satisfactory performance in the three months ended June 30, 2001. Net sales stood at Rs.549 crores compared to Rs. 565 crores and the gross profit was Rs. 274 crores as compared to Rs. 284 crores in the same period last year. The decline was largely on account of lower volumes and higher input costs. The profit after providing for depreciation and current tax stood at Rs. 172 crores against Rs. 176 crores.

Metal production was marginally lower at 61,585 tonnes against 61,835 tonnes on account of constraints on power availability. Rolled product output was higher by 8 per cent at 17,545 tonnes and alumina by 3 per cent at 1.14 lakh tonnes.

The company has embarked on a brownfield expansion in Renukoot which will help enhance the smelter capacity by one lakh tonnes to 3.42 lakh tonnes and the alumina refining capacity by 2.10 lakh tonnes to 6.60 lakh tonnes annually. The cost of the project is Rs. 1,800 crores and the commissioning of the first phase during the current financial year.

Grasim Industries

Grasim Industries has reported a turnover of Rs. 1,184 crores in the first three months ended June 30, 2001 against Rs. 1,196 crores. The gross profit before depreciation and interest charges was up by 31.5 per cent to Rs. 247.70 crores from Rs.188.40 crores. The cement business has registered an impressive growth of 24 per cent in realisations. Cement production was 2.57 million tonnes (2.46 million tonnes) and sales 2.55 million tonnes (2.47 million tonnes). Realisations, stronger at Rs. 2,046 per tonne against Rs.1,646 tonnes have been the major contributing factor in the enhanced operating margin of the cement business.

Interest charges claimed Rs. 47.50 crores (Rs.61.30 crores) and depreciation Rs. 62.60 crores (Rs.62.30 crores). Restructuring of high cost debts coupled with effective fund management saw a reduction in interest costs.

The profit after provision for employee separation cost of Rs. 2.40 crores (Rs.1.40 crores) and for taxation of Rs. 23 crores (Rs.4 crores), was up by 89 per cent at Rs.112 crores (Rs. 59 crores). The company has also made a provision of Rs. 10 crores (nil) towards deferred taxes. The net profit after this provision stood at Rs. 102.20 crores.

To grow its cement business and to sustain its market share, Grasim has planned a total capital expenditure of Rs. 530 crores.

Dr. Reddy's Lab

Dr.Reddy's Laboratories has reported 32 per cent higher turnover of Rs.283.8 crores and 115 per cent rise in net profit to Rs.53.5 crores for the first quarter ended June 30, 2001. For the corresponding period of the previous year turnover was Rs.214.6 crores and net profit Rs.24.9 crores.

This reflects the performance of the amalgamated companies (Cheminor Drugs and American Remedies with Dr. Reddy's), according to a press release.

The board of directors of Dr. Reddy's Lab recommended enhancement of FIIs holding limit up to 49 per cent. Two other recommendations were sub-division of equity shares of Rs.10 each into two equity shares of Rs. 5 each, and reserving upto 3 per cent of issued share capital for employee stock option over a period of a few years.

The release said the board also considered formation of a new company for proteomics and discovery services businesses with a total investment of Rs.25 crores. The AGM will be held on September 24.

The release said Oxaprozin 600 mg tablets and Ranitidene product line together contribute 81 per cent of the generics turnover. Famotidone tablets launched in April contribute 18 per cent. Revenue from branded formulations grew by 33 per cent to Rs.139.9 crores and from bulk actives by 7 per cent to Rs.110 crores. Revenue from critical care was Rs.5 crores, a growth of 40 per cent, it said.

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Section  : Business
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