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Tuesday, July 31, 2001

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Indian Aluminium profit up in Q1

Indian Aluminium Company (Indal) has announced a net profit of Rs. 28.66 crores for the quarter ended June 2001 against Rs. 25.57 crores in the corresponding period of the previous year. The company's net sales for the quarter was at Rs. 335.88 crores (Rs. 285.2 crores) and other income was at Rs. 1.03 crores (Rs. 1.13 crores).

The company provided Rs. 9.17 crores (Rs. 9.17 crores) for interest, Rs. 15.49 crores (Rs. 15.26 crores) for depreciation, Rs. 1.7 crores (Rs. 1.69 crores) for compensation under voluntary retirement scheme (VRS) and Rs. 8.45 crores (Rs. 8 crores) for tax.

According to the company, improved production from most of the company's units along with better realisation on domestic sales were the key contributing factors to the performance.

A business turnaround resulted in the highest ever first quarter performance in sheet sales, with a 37 per cent increase in export volumes.

A strong performance by the extrusions business was reflected in the 33 per cent rise in production from the Alupuram unit at 2,123 tonnes (1,598 tonnes) a 24 per cent increase in domestic sales volumes and a significant 82 per cent rise in export volumes over the corresponding period of the previous year.

The two smelters at Hirakud and Alupuram produced 10,954 tonnes (10,888 tonnes). The Hirakud captive power plant operated at an average PLF of 93 per cent meeting most of the power requirements of the Hirakud smelter.

Alumina production from Belgaum and Muri increased to 1.09 lakh tonnes (1.08 lakh tonnes) of which the speciality alumina chemicals produced was 20,573 tonnes (18,726 tonnes). The chemicals business faced the challenge of lower international alumina prices and higher input costs through a strategic shift towards higher export of hydrate for better realisation and 32 per cent increase in export of speciality alumina chemicals.

While production of foil was lower at 1,559 tonnes (1,713 tonnes), export volumes increased by 60 per cent during the first quarter.

Indian Rayon

Indian Rayon and Industries has announced a net profit before deferred tax of Rs. 15.28 crores for the quarter ended June 30, 2001 against Rs. 9.83 crores in the corresponding period of the previous year.

The turnover for the quarter was at Rs. 342.13 crores (Rs. 319.39 crores) and the gross profit Rs. 37.05 crores (Rs. 30.68 crores). The company paid a royalty of Rs. 2.46 crores (Rs. 1.86 crores). It provided Rs. 18.28 crores (Rs. 18.21 crores) for depreciation and Rs. 1.03 crores (Rs. 78 lakhs) for current tax. The company also provided Rs. 5.37 crores (nil) for the newly introduced deferred tax after which the net profit was at Rs. 9.91 crores (Rs. 9.83 crores). The backlog of the deferred tax until March 31, 2001, estimated at Rs. 79.14 crores will be provided for out of the revenue reserves.

In terms of division-wise performance, the viscose filament yarn division produced 3,818 tonnes (3,812 tonnes), the carbon black division 20,743 tonnes (20,014 tonnes) and insulators division 6,293 tonnes (5,388 tonnes).

In terms of sales volume and turnover, in garments, the company sold 11.8 lakh shirts (10.7 lakh shirts) and 3.6 lakh trousers (2.8 lakh trousers) amounting to Rs. 85.2 crores (Rs. 71.9 crores). Sales of viscose filament yarn was at 2,808 tonnes (3,696 tonnes) amounting to Rs. 58.9 crores (Rs. 53 crores), carbon black 19,793 tonnes (21,668 tonnes) amounting to Rs. 61.3 crores (Rs. 57.2 crores), insulators 4,960 tonnes (4,978 tonnes) amounting to Rs. 34 crores (Rs. 34.5 crores) and textiles Rs. 86.1 crores (Rs. 85.4 crores).

India Cements

The India Cements Ltd. (ICL) has reported a net profit of Rs. 11.61 crores for the quarter ended June 2001, up from Rs. 5.67 crores during the same quarter last year. The company, however, has shown a lower turnover of Rs. 358.42 crores (Rs. 390.74 crores) in the first three months, recording a 8.3 per cent fall primarily due to a poor cement offtake in the South.

Notwithstanding reduction in clinker production, ICL has set aside Rs. 57.20 crores and Rs. 20.16 crores towards interest and depreciation for the first quarter against Rs. 47.61 crores and Rs. 18.82 crores respectively in the corresponding period of the previous year. Company officials have attributed the higher charges to increased running costs. Further, debt raised to fund upgradation, too, has jacked up the charges, they say.

Mr. N. Srinivasan, Vice-Chairman and Managing Director, presages a demand pick-up in the second quarter. For one, expected fall in prices has not happened here. This will force those who have postponed buying to lift cement. For another, the firmness in demand up north is bound to stop inflow into the south. This is sure to aid the prices in the southern market.

Sundaram Brake

Linings

The continued recessionary trend in the commercial vehicle market had its impact on the performance of Sundaram Brake Linings and the domestic turnover has dipped by 18.4 per cent in the three months ended June 30, 2001 at Rs. 10.22 crores against Rs. 12.52 crores. Exports, however, were marginally higher at Rs. 8.98 crores against Rs. 8.94 crores. The gross profit before depreciation and interest charges has declined sharply to Rs. 2.66 crores from Rs. 4.03 crores. Depreciation claimed Rs. 88.33 lakhs (Rs.87.51 lakhs) and taxation Rs. 13 lakhs (Rs. 34 lakhs). The net profit has dropped by 64 per cent to Rs. 65.01 lakhs.

TVS Electronics

TVS Electronics, manufacturers of computer peripherals, has marginally increased its sales revenue to Rs. 54.11 crores in the second quarter ended June 30, 2001 against Rs. 52.31 crores for the comparative period last year. The gross profit before depreciation and interest charges has risen to Rs. 3.37 crores from Rs. 2.64 crores.

Interest charges claimed a higher amount of Rs. 2.18 crores (Rs.1.59 crores) and depreciation Rs. 94 lakhs (Rs.64 lakhs). The net profit was Rs. 25 lakhs against Rs. 41 lakhs. In the half year ended June 30, revenues grew by 11 per cent to Rs. 118 crores and the net profit to Rs. 1.14 crores from Rs. 82 lakhs.

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