Tuesday 25th June 2024

“HINDUSTAN COPPER’S” Profit Increases, Three Fold in Q1 FY 19

Sep 9th, 2018 2:25 pm | By | Category: LATEST NEWS

Santosh Sharma, CMD, Hindustan Copper ltd.

Santosh Sharma, CMD,
Hindustan Copper ltd.

The Major Highlights
 Mine production up by 22% – a key value driver in the value chain
 Net sales up by 8%
 Net Profit up by 245%

Board of Hindustan copper in its meeting held on 9th Aug 2018 at New Delhi approved the financial results of first quarter of fiscal year 2018-19. During the quarter the Financial and Physical performance of the Company has improved substantially. Santosh Sharma is the CMD of Hindustan Coppper Ltd.

The Company has registered growth in profit after tax by 245% compared to the corresponding period of the previous year. The PAT during the quarter was 35.21 crore and PBT was Rs 50.88 crore. The net sales during the quarter were Rs 397.69 crore. The EBDITA margin during quarter was 29% compared to 15% in the corresponding period of the previous fiscal.

On the production front, the growth momentum has been maintained, During the quarter, mine production in terms of copper content was 8641 MT as against 7110 MT in the corresponding period of the last year. Copper ore production was 9.77 lakh tonne registering a growth of 23% over corresponding period of previous fiscal.
Total copper sales volume during the quarter was 9230 MT as compared to 9429 MT to last year similar period. Wire rod production was 5439 MT thereby registering a growth of 17%. During the quarter the Company has undertaken major overhauling of 56 days of its smelter and refinery plant located at Ghatsila. Since then the plant is operating at its rated capacity During the month, the Company mine expansion will further gain momentum as major tenders for mine construction and production will be floated.

CCEA Gives Wings To HCL Mine Expansion Plan Cabinet Committee on Economic Affairs, meeting chaired by the Prime Minister Narendra Modi on 1st Aug 2018 has given its approval for issue of fresh 13,87,82,700 equity shares to the extent of 15% of paid up equity capital of face value of Rs. 5/- each by HCL through the Qualified Institutions Placement (QIP) route as per SEBI and other applicable guidelines. Presently HCL meets 4% of the country’s requirement of copper.HCL aims at enhancing its capacity 6 times from its present production capacity to 20 million tonne per year.The capex requirement of the above mine expansion plan is Rs 5500 which is spread over next 6 years. Besides, Rs 175 crore will also be spent for exploration activities spread over three years. This will lead to increase the availability of copper raw material from current 4% to 30% of the Country’s demand. Increasing the mining capacity of HCL is essential to reduce dependence on import by 25% of copper mineral by the country.
The proposed expansion plan would create employment opportunities for 9300 persons approximately. Expansion projects of HCL are located in the States of Madhya Pradesh, Rajasthan and Jharkhand.Consequently, GoI shareholding in HCL will come down from 76.05% to 66.13%. It will also help GoI to meet the statutory Minimum Public Shareholding guidelines.Further, the paid-up Share Capital of HCL will increase from the present Rs. 462.61 crore to Rs. 532.00 crore. HCL will use the proceeds of QIP to meet its expansion/capex plan. There is no budgetary support for the expansion plan.

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