Indal net profit at Rs 288 million in Q3; exports improve by 12%

Our Corporate Bureau
25 January 2003

Mumbai: With the continuing worldwide economic slowdown, Indal, an Aditya Birla group company, faced an extremely challenging third quarter with lower export realisations, a fall in sales of rolled products due to lack of demand growth and the impact of higher energy costs.

As a result, the company's net sales or income from operations for the third quarter stood at Rs 3,150 million, vis-à-vis Rs 3,308 million in the corresponding quarter of last year. While profits were lower, with the net profit at Rs 288 million (Rs 301 million), exports improved by 12 per cent at Rs 867 million (Rs 772 million).

The impact of an increasingly competitive semifab market and rising costs of power were partly overcome through various measures, such as improved production from alumina plants, record captive power generation and commissioning of new smelter pots at Hirakud ahead of schedule. Enriched product mix was a key value driver across all of Indal's operating units, with improved efficiencies and lower costs of production.

Nine months (April-December 2002)
While net sales and the operating revenue remained flat at Rs 9,948 million (Rs 9,980 million) for the nine months ended December 2002, exports grew by 14 per cent at Rs 2,852 million compared to Rs 2,493 million for the corresponding period last year. The net profit stood at Rs 843 million compared to Rs 895 million recorded for the same period during 2001-02.

Operational highlights:
Nine months: April to December 2002

Chemicals
Both the alumina plants delivered a record output, totalling 358,050 tonnes for the nine month period, an increase of 6 per cent (338,450 tonnes), with a 17-per cent increase in output of speciality alumina. While the company was able to improve operational efficiencies, enhance product-mix and achieve a lower cost of production, external factors such as low international price of alumina, impacted performance.