HINDALCO=FY10=GOOD PROFITS=UNREALISED GAINS HELP=FY11 TO BE BETTER

Hindalco

Industries Ltd

FY10 vs FY09

CONSOLIDATED RESULTS

COMPARISON

Hindalco has delivered better results in FY 10 compared to FY 09, but on lower sales.

Consolidated Net Sales has decreased by 7.42 % to Rs.60563 cr from Rs.65415 Cr YOY.

Total Expenditure   has decreased more than proportionately by 18.16% to Rs.53760 Cr from Rs.65686 Cr YOY.

Consequently, Consolidated Net Profit has shot up by 708.86% YOY to Rs.3925 Cr from Rs.485 Cr last year.

Based on this, on a face value of Rs.1, the consolidated Basic EPS has shot up to 21.58.

Hindalco had acquired Canada based Novelis in 2007 for an enterprise value of $ 6 billion. Its FY 10 Net profit includes a non-cash gain (stated to be unrealized derivative gains) of about Rs 2,601 crore as per current exchange rates and an additional profit of Rs 333 crore from market adjustments on metal and currency derivatives at the Novelis Factory. Profitability of aluminium operations during the year at Novelis was eroded due to several factors like lower rupee exchange rate, lower sales etc. Current year is likely to be better than FY 10.

HINDALCO CONSOL	FY10(lakhs)	FY09(lakhs)	Dif%age
Net Sales	6056255	6541461	-7.42
Other Oprtg Income	15956	21054	-24.21
SIT & WIP	-170119	276177	-161.6
Raw Materials	4144552	4841944	-14.4
Traded goods	7380	11672	-36.77
Employees Cost	506501	495435	2.23
Depreciation	278360	303777	-8.37
Other Expenditure	609318	639552	-4.73
Total Expenditure	5375992	6568557	-18.16
Profit-Operations	696219	-6042	-11622.99
Other Income	32271	68783	-53.08
Interest	110414	123233	-10.4
Exceptional items	-	-
Tax Expense	182891	-95375	-291.76
Extraordinary Items	-	-
Net Profit	435185	34883	1147.56
Minority Interest	42370	-17178	-346.65
Shares of Associates	268	3530	-92.41
Other Related Items	-	-
Consol.Net Profit	392547	48531	708.86
Dividend (%)	-	-
F V (in Rs.)	1	1	0
Paid-up Equity	19137	17005	12.54
Reserves	2134620	-
Basic EPS bef.Extraitems	21.58	-
Dil.EPS bef.Extra.items	21.58	-
Basic EPSaft.Extra.items	22.17	-
Dil.EPSaft.Extra.items	22.16	-

STAND ALONE RESULTS

On a stand alone basis, Net Sales has increased by 7.51% to Rs.19408 cr from Rs.18053 Cr YOY.

Based on raw material expenditure increase of 19.8 %, the total Expenditure has increased by 9% to rs.17254 Cr from Rs.15829 Cr YOY.

The stand alone Net Profit has therefore fallen by 14.11 % to Rs.      1916 Cr from Rs.2230 Cr YOY.

The stand alone Basic EPS for the year stands at Rs.10.82        on a face value of Rs.1/-       

HINDALCO NON CONSOL	FY10(lakhs)	FY09(lakhs)	Diff%Age
Net Sales	1940802	1805297	7.51
Other Oprtg Income	12826	16668	-23.05
SIT & WIP	-75525	52071	-245.04
Raw Materials	1516368	1265784	19.8
Traded goods	7199	11304	-36.31
Employees Cost	87775	66755	31.49
Depreciation	66721	64527	3.4
Other Expenditure	122819	122464	0.29
Total Expenditure	1725357	1582905	9
Profit-Operations	228271	239060	-4.51
Other Income	25985	63665	-59.18
Interest	27800	33693	-17.49
Exceptional items	-	-
Tax Expense	34893	46005	-24.15
Extraordinary Items	-	-
Net Profit	191563	223027	-14.11
Dividend (%)	135	135	0
Face Value (in Rs.)	1	1	0
Paid-up Equity	19137	17005	12.54
Reserves	-	-
Basic EPS	10.82	-
Diluted EPS	10.81	-

QUARTERLY

COMPARISON

The quarterly results indicate that net sales in Q4 has increased just by 1.37% compared to Q3. However, both Q3 and Q4 do show a significant rise in sales compared to earlier quarters.

This is coupled with a raw material cost decline of 6.78 % in Q4 over Q3 and much more compared to earlier quarters. Net profit in Q4 has therefore surged by 55.45% in Q4 to a record Rs.664 crores.Q4 EPS has grown by 44% to 3.47 on a FV of Rs.1/-

Based on Q4 results, if the trend continues, FY11 could be a very good year for Hindalco.

HINDALCO QTRLY	2010MAR	2009 DEC	Diff%age	2009SEP	2009JUN	2008DEC
Net Sales	535846	528610	1.37	489256	387090	408017
Raw Materials	361628	387931	-6.78	442750	324059	210197
Total Expdr	473744	473530	0.05	447381	330702	349910
Profit-Opertns	66696	57998	15	44330	59247	61808
Net Profit	66392	42710	55.45	34405	48056	54480
Dividend (%)	-	-		-	-	-
Face Value	1	1	0	1	1	1
Paid Up Equity	19137	19136	0.01	17005	17005	17005
Basic EPS	3.47	2.41	43.98	2.02	2.83	3.37

ANNOUNCEMENTS TO

THE EXCHANGE

04-06-2010        Hindalco Industries Limited has informed the Exchange regarding the consolidated Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 6056255 lacs for year ending on 31-MAR-2010 against Rs. 6541461 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 392547 lacs for the year ending on 31-MAR-2010 against Rs. 48531 lacs for the year ending on 31-MAR-2009.

04-06-2010        Hindalco Industries Limited has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 1940802 lacs for year ending on 31-MAR-2010 against Rs. 1805297 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 191563 lacs for the year ending on 31-MAR-2010 against Rs. 223027 lacs for the year ending on 31-MAR-2009.

04-06-2010        Hindalco Industries Limited has informed the Exchange that at the Meeting of the Board of Directors of the Company held on June 4, 2010 have recommended the payment of Dividend on Equity Shares of the Company for the Financial Year commencing on April 1, 2009 up to March 31, 2010 to Equity Shareholders @ Rs. 1.35 per Equity Share of the face value of Re. 1/- each i.e. 135% per share.       -

11-05-2010        Hindalco Industries Limited has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2010 as follows: Net Sales of Rs. 535846 lacs for quarter ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 66392 lacs for the quarter ending on 31-MAR-2010.      -

03-03-2010        Hindalco Industries Ltd. has informed the Exchange that "Due to labour problems in our Mouda unit, the management has suspended operations of the Unit with immediate effect. This will not effect servicing the market since the Unit was delivering low production since few months".

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