Hindalco position downslides after posting disappointing Q1 results
13 percent fall in net profit disproves analysts’ expectations
After posting its first quarter results for the quarter ended 30 June 2002, Hindalco recorded a 13 percent fall in its net profit to Rs 1402 million as compared to Rs 1611 million in the corresponding period last fiscal. However, sales increased by 6.73% to Rs 586 crore, from Rs 549 crore in JQ 2001.
The 13 percent fall in net profit disproved analysts’ expectations. Meanwhile, the company’s Q1 sales fell on the higher side of analysts’ projections as it announced a 6.73 percent rise in sales to Rs 5860 million.
Recently, the company announced an aggressive restructuring exercise involving the merger of Indo Gulf Corporation’s copper business with itself. Hindalco also merged Indian Aluminium (Indal) with itself. Meanwhile, it has made an open offer for full control of Indal at a price of Rs 120 per share. Currently, Hindalco holds 74.6 percent stake, and if the open offer goes through successfully, Indal will become a 100 percent subsidiary of Hindalco.
