X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Hindalco: A peep into past-IV - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Aug 5, 2008

    Hindalco: A peep into past-IV

    In the last article, we saw the performance of balance sheet of Hindalco between the period 1999 and 2002. Now let us track the performance of the same between the period 2003 and 2007. This was the period during which it merged copper business of Indo Gulf with itself and consequently, the business model of company under went a change.

    Let us have a look at the standalone balance sheet of the company and how has it changed between the period 2003 and 2007.

    Considering the assets side first, net fixed assets of the company grew at a CAGR of 15%, which can be attributed to a major capacity expansion drive and the merging of Indo Gulf's copper division. The investments of the company grew at a CAGR of 35%, mainly on account of huge cash generated through operation that was invested in subsidiaries and treasury.

    The working capital of the company grew at a CAGR of 18% at the same time when topline of the company grew at a CAGR of 38%. If we exclude cash from it, then it grew at a CAGR of 17% during the period under consideration. The debtor's days were reduced from 37 in FY03 to 28 in FY07. However, days in inventory increased from 67 in FY03 to 79 in FY07.

    On the liabilities side, the company's debt increased at a CAGR of 32%. The net worth of the company grew at a CAGR of 19%. Consequently, the debt to equity ratio rose from 0.4 in FY03 to 0.6 in FY07.

    To conclude, although Hindalco was able to affect a significant rise in its topline and profits on account of the addition of the copper business, the balance sheet of the company weakened a bit during the period as its debt to equity ratio increased from 0.4 to 0.6.

     

     

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

      
     

    More Views on News

    Hindalco Industries: Deleveraging Kicks in, One-Offs Hurt the Bottomline (Quarterly Results Update - Detailed)

    Aug 22, 2017

    Hindalco Industries has reported a healthy growth in the topline on the back of Higher volume and realisation for both Aluminium and Copper segments. However, the bottomline declined marginally primarily on the back a provision of Rs 1.04 billion.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    Dear PM Modi, India is Already Land of Self-Employed, and It Ain't Working(Vivek Kaul's Diary)

    Aug 21, 2017

    Most Indians who cannot find jobs, look at becoming self-employed.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Think Twice Before You Keep Money In A Savings Bank Account(Outside View)

    Aug 22, 2017

    Post demonetisation, a cut in bank savings deposits rates was in the offing.

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    NALCO SHARE PRICE


    Aug 24, 2017 01:11 PM

    TRACK NALCO

    NALCO - GUJARAT FOILS COMPARISON

    Compare Company With Charts

    COMPARE NALCO WITH

    MARKET STATS