Hindustan Copper Ltd's (HCL) need for fresh equity has reduced following improved finances, its Chairman and Managing Director Shakeel Ahmed said pointing out that HCL had posted “sterling fourth quarter results”.
Addressing a press conference here recently, he said while the company's physical performance was good, its vastly improved financials were a factor of improved copper prices in rupee terms.
During the fourth quarter ended March 31, 2012, HCL saw its profit after tax shooting up by 125 per cent, and sales turnover by 86 per cent . During 2011-12, it posted its highest-ever profit of Rs.323 crore on a turnover of Rs.1,638 crore. A 20 per cent dividend has been declared for the year.
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Hindustan Copper was slated to have a follow-on public offer in 2010-11 with two components — a fresh issue of capital and a 10 per cent divestment. The offer did not fructify for various reasons, including valuation issues and market sentiment. It was subsequently felt that HCL would be able to fund its own expansion projects. “It is now felt that we will be required only to go in for divestment,” he said. The draft Cabinet note in this regard has already been circulated, according to Mr. Shakeel Ahmed.