“You need not worry about it. There’s no threat of any kind,” he assured shareholders at the 48th annual general meeting of the Hindalco AGM.
MUMBAI: In his first ever interaction with shareholders of Hindalco Ltd, after reports of a probable hostile takeover of the company did the rounds, Kumar Mangalam Birla, the chairman, assured his shareholders “there’s no worry”.
“You need not worry about it. There’s no threat of any kind,” he assured shareholders at the 48th annual general meeting of the Hindalco AGM.
Shareholders were quizzing the chairman on the recent speculation of a leading global aluminium major eyeing the country’s largest private sector aluminium maker. In recent months, the promoters increased their holding to 31.4% through the preferential route at Rs 173.87 per share amounting to Rs 2564.6 crore. The chairman underlined the investments in the next three years aggregating Rs 30,000 crore.
Net profit at Rs 603 crore in the first quarter ended June 30, barely changed from last year’s Rs 602 crore. Sales rose 9.5% to Rs 4678 crore, the company said. Of the total revenues of Rs 4677.9 crore, aluminium business contributed Rs 1753.7 crore.
Aluminium production in this quarter was the highest ever in a quarter. Aluminum metal sales volume rose by 7.6% along with higher proportion of value-added products.
Earnings from the aluminum business dropped after the rupee surged 7% against the dollar, the biggest quarterly gain in 34 years. Fees from copper-refining may drop further, the company said, likely limiting its ability to quicken the repayment of loans used for the $3.4 billion takeover of Novelis Inc.
“You cannot compare the two businesses,” argued Debu Bhattacharya, managing director of Hindalco on the sidelines of the AGM. “One’s a trawling business, and the other is an integrated business,” Bhattacharya said.
“The company obtained a 70% stake in the joint venture Hindalco-Almex, with Almex holding the balance. The joint venture has been allotted land in the SEZ in Aurangabad.
This project, will manufacture high strength Aluminium alloys for applications in the aerospace, sporting goods and surface transport industries,” the company added. This metal will be most value added material produced from aluminium, Birla added.
Birla mentioned that Hindalco’s aluminum foil and alloy wheels businesses were impacted because of overcapacity.
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