Indal can’t match Hindalco — CEO

While trying to soothe shareholders’ ire about stagnating dividend payouts and non-issue of bonus shares for long, the Indal CEO said that the board of the company decided to maintain a conservative payout ratio because of the ensuing capital expansion plans which were to be undertaken. During 1998-99, the Indal board declared a dividend of Rs four onevery ordinary equity share.

Bark-Jones also clarified some shareholders’ suggestions that Alcan, as a promoter of Indal, should pump in funds to retire debts in order to lessen the interest burden. He said that this was not in the interest of shareholders because some degree of gearing increased shareholders’ value. On the expansion projects, he said that the capacity of Belgaum Refinery in Karnataka would be increased from 2,90,000 tonnes to 3,65,000 tonnes and subsequently to 5,10,000 tonnes. The alumina plant’s capacity at Muri in Bihar would also be increased from 1,01,000 tonnes to 3,00,000 tonnes, he said.

Bark-Jones also said that the detailed feasibility report for the doubling of Hirakud’s smelting capacity was under evaluation. Responding to some of the shareholders’ suggestion that Indal should acquire India Foils Limited and Pennar Aluminium, the Indal CEO said that as the Foils capacity in the country was in excess supply, it would not be a good business sense to go in for such acquisitionsat the moment. However, he said that Indal would consider such proposals at an appropriate time.

Finally, he painted a rosy picture for the business saying that alumina prices would firm up and this would help Indal to perform well in export front also.

During 1998-99, the sales of Indal was Rs 1,152 crore and net profit was Rs 76.4 crore. Indal Q1 net profit rises marginally.

Indal Q1 net rises marginally

CALCUTTA: The net profit of Indian Aluminium Company (Indal) during the first quarter (Q1) of 1999-2000 has risen nine per cent at Rs 17.5 crore against previous year’s figure of Rs 16.12 crore in the same period.

According to a company release here today, net sales and operating revenue in the first quarter was lower at Rs 222.8 crore as compared to Rs 237 crore in 1998-99 Q1. Profit before tax was 17 per cent higher in 1999-2000 Q1 at Rs 21.8 crore.