Hindalco profits dip

MUMBAI, May 5: Hindalco Industries, the second largest aluminium producer in the country, has announced a 8 per cent fall in sales turnover to Rs 1,308.26 crore during the year ended March 1997 from Rs 1422.21 crore recorded in 1995-96. The company8217;s net profit has also declined by 2.54 per cent to Rs 390.95 crore from Rs 401.14 crore registered in the previous year.

The board of A V Birla group company has recommended a dividend of 45 per cent on the expanded capital base following the 1:2 bonus issue declared last year. This is equivalent to last year8217;s 65 per cent dividend. The Rs 4.50 per share dividend will absorb Rs 36.86 crore, including corporate dividend tax of Rs 3.35 crore.

A K Agarwal, president of Hindalco, said the company8217;s performance has been in line with expectations as operations during the year had been affected due to severe power shortage in Uttar Pradesh, where the integrated complex is located and a stiff decline of aluminium prices internationally.

The company8217;s EPS on the expanded equity base has fallen to Rs 52.50 from Rs 80.79 in 1995-96. Depreciation provided was lower at Rs 552.77 crore.