Hindalco: A peep into past I - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Hindalco: A peep into past I

Jul 9, 2008

In the last few articles, we have discussed about the performances of two of the biggest players in the domestic steel market. Let us now turn our attention to non-ferrous metals companies and track the performance of some of the biggest Indian companies in this space over the same time period i.e. from 1999 to 2003 and 2003 to 2007. In this article, we will discuss about the profit and loss account of Hindalco, one of India's largest aluminium and copper producers, between 1999 and 2002. It should be borne in mind that the business model of the company underwent a change in 2003 as the company merged its group company Indo Gulf's copper division with itself. Hence, for a like-to-like comparison to hold good, we have considered the time period from 1999 to 2002 and 2003 to 2007 for Hindalco.

The topline of the company grew at a CAGR of 10% during the period under consideration. Primary aluminium and aluminium value added products contributed more than 90% to the total revenues during this period. The revenues from primary aluminium grew at a CAGR of 3%, but its volumes declined at a CAGR of 1%. However, realisations increased from Rs 79,812 in FY99 to Rs 88,497 in FY02. This can be owed to LME prices, which raised from U$1,362 in FY99 to U$1,395 in FY02 a CAGR of 1%. The revenues from value added products grew at a CAGR of 15% and its volume grew at a CAGR of 8.4%. The realization from value added product increased from Rs 94,533 in FY99 to Rs 113,746 in FY02, a CAGR of 6.4%.

On the operating performance front, operating profits grew at a CAGR of 9%. It showed a rising trend except for the year FY02 where it declined by 5.6% on YoY basis. This was mainly on account of rising costs of key inputs and loss of volumes. The operating costs grew at a CAGR of 11%, which can mainly be attributed to increase in the prices of raw materials and power generation costs.

The bottomline of the company grew at a CAGR of 5% in the period under consideration. But the trend in net profit margin was declining. It decreased from 32% in FY99 to 28% in FY02. This can be explained by increased depreciation, which grew at a CAGR of 7%. However reduction in interest outgo, which declined at a CAGR of 18%, cushioned the margins from further decline.

In the next article, we will take a look at the company's performance during the period 2003 and 2007, considered to be an extremely favorable period for commodities.

Equitymaster requests your view! Post a comment on "Hindalco: A peep into past I". Click here!

  

More Views on News

HINDALCO Announces Quarterly Results (3QFY21); Net Profit Up 76.2% (Quarterly Result Update)

Feb 11, 2021 | Updated on Feb 11, 2021

For the quarter ended December 2020, HINDALCO has posted a net profit of Rs 3 bn (up 76.2% YoY). Sales on the other hand came in at Rs 114 bn (up 11.0% YoY). Read on for a complete analysis of HINDALCO's quarterly results.

HINDALCO 2019-20 Annual Report Analysis (Annual Result Update)

Nov 23, 2020 | Updated on Nov 23, 2020

Here's an analysis of the annual report of HINDALCO for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of HINDALCO. Also includes updates on the valuation of HINDALCO.

HINDALCO Announces Quarterly Results (3QFY20); Net Profit Down 22.0% (Quarterly Result Update)

Feb 17, 2020 | Updated on Feb 17, 2020

For the quarter ended December 2019, HINDALCO has posted a net profit of Rs 2 bn (down 22.0% YoY). Sales on the other hand came in at Rs 102 bn (down 14.3% YoY). Read on for a complete analysis of HINDALCO's quarterly results.

HINDALCO 2018-19 Annual Report Analysis (Annual Result Update)

Aug 7, 2019 | Updated on Aug 7, 2019

Here's an analysis of the annual report of HINDALCO for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of HINDALCO. Also includes updates on the valuation of HINDALCO.

More Views on News

Most Popular

It's the Beginning of a New Bull Phase in Smallcaps (Profit Hunter)

Feb 24, 2021

Last time the smallcap index crossed 19k a big correction followed. Here's what makes it different this time.

Intraday Trading for a Living (Fast Profits Daily)

Feb 15, 2021

In this video, I'll cover your queries on intraday trading and also share my view on how to decide stop losses and target prices.

Top 5 Stocks Mutual Funds Bought and Sold in January 2021 (Sector Info)

Feb 16, 2021

A look at what India's top equity mutual funds bought and sold in January 2021.

I Would Recommend this Small-cap Stock Over Tesla (Profit Hunter)

Feb 16, 2021

Do you enjoy reading Tesla and Bitcoin stories? Here's a not so famous small-cap stock to profit from the rise of EVs.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

HINDALCO SHARE PRICE


Feb 26, 2021 (Close)

TRACK HINDALCO

  • Track your investment in HINDALCO with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

HINDALCO 8-QTR ANALYSIS

COMPARE HINDALCO WITH

MARKET STATS