Apr 24, 2001|
Indal: Record performance
Indian Aluminium Company Ltd. (Indal), part of the Aditya Birla Group, has reported its best performance in 62 years of operations in terms of sales, profits and exports. The increased sales are mainly due to better realisations, higher capacity utilisation and improved product mix.
|Operating Profit (EBDIT)
|Operating Profit Margin (%)
|Profit before Tax
|Profit after Tax/(Loss)
|Net profit margin (%)
|No. of Shares (eoy)
|Earnings per share
The growth in sales and bottomline was mainly driven by downstream higher value added products. The aluminium sheets, extrusions and speciality alumina recorded impressive growth for the fiscal ended March '01. A significant part of the growth was led by export volumes. Exports for FY01 increased by 46%.
The operating profits of the company have increased significantly. This could be driven by higher sales and improved margins. The OPM has risen by 170 basis points. Realisations for the company were better as aluminium prices continued to rule firm for most part of the previous fiscal.
The company has implemented an enterprise resource planning (ERP) package, which could have helped improve operating efficiencies. Consequently, working capital requirements have been reduced. The working capital to sales has declined from 29% to 25%. With dependence on short term funds for meeting working capital requirements reducing the interest burden for the company has dropped marginally.
Extraordinary items is towards payment under the VRS, writing off long-term investments in Annapurna Foils Ltd. and Orissa Extrusions Ltd. The company has also accounted for irrecoverable receivables from Orissa Extrusions Ltd. The effective tax of the company has increased significantly from 13% to 22%.
At Rs 93.5 the company trades on a multiple valuation of 5.7x FY01 earnings.
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