ASSIGNMENT
ANALYSIS OF FINANCIAL STATEMENTS
COMPANY: HINDALCO
Submitted by: Suchir Borde (A-06)
Company Profile
An industry leader in aluminum and copper, Hindalco Industries Limited, the metals flagship
company of the Aditya Birla Group is the world's largest aluminium rolling company and one of
the biggest producers of primary aluminum in Asia. Its copper smelter is the worlds largest
custom smelter at a single location. Established in 1958, we commissioned our aluminium
facility at Renukoot in eastern Uttar Pradesh, India in 1962. Later acquisitions and mergers, with
Indal, Birla Copper and the Nifty and Mt. Gordon copper mines in Australia, strengthened our
position in value-added alumina, aluminum and copper products. The acquisition of Novelis Inc.
in 2007 positioned us among the top five aluminium majors worldwide and the largest vertically
integrated aluminium company in India. Today we are a metals powerhouse with high-end
rolling capabilities and a global footprint in 13 countries with a consolidated turnover of USD
14.8 billion (Rs. 80,193 crore).The acquisition of Novelis Inc. in 2007 positioned us among the
top five aluminium majors worldwide and the largest vertically integrated aluminium company
in India. Today we are a metals powerhouse with high-end rolling capabilities and a global
footprint in 13 countries with a consolidated turnover of USD 14.8 billion (Rs. 80,193 crore)
COMPANYS GROWTH
Our well-crafted growth and integration hinges on the three cornerstones of cost
competitiveness, quality and global reach. We are also committed to the triple bottom line
accountability of economic, environment and social factors. Care for the community around our
operating units is best exemplified by our deep-rooted social commitment.
Financial Statements
Hindalco Industries
Financial Ratios
Mar '13
Mar '12
Mar '11
Mar '10
Mar '09
Operating Profit Margin(%)
Profit Before Interest And
Tax Margin(%)
8.39
11.26
14.98
15.04
16.03
5.54
8.49
11.87
11.41
12.07
Gross Profit Margin(%)
5.75
8.67
12.08
11.59
12.48
Net Profit Margin(%)
Return On Capital
Employed(%)
6.28
8.23
8.83
9.69
11.87
4.27
6.15
8.9
7.46
1.26
1.01
0.96
1.02
1.2
0.91
0.72
0.55
0.46
0.34
0.24
0.39
0.23
0.88
0.35
0.61
0.35
0.17
0.19
0.25
0.5
0.64
0.67
0.59
0.63
Expenses as Composition of
Total Sales
29.06
30.14
29.87
27.12
28.38
Cash Flow Indicator Ratios
Dividend Payout Ratio Net
Profit
17.63
14.98
15.61
15.72
12.04
12.56
Mar '13
11.45
Mar '12
11.81
Mar '11
11.64
Mar '10
9.34
Mar '09
8.88
11.69
11.16
10.01
13.12
Profitability Ratios
Liquidity And Solvency Ratios
Current Ratio
Quick Ratio
Debt Equity Ratio
Long Term Debt Equity
Ratio
Management Efficiency Ratios
Asset Turnover Ratio
Profit & Loss Account Ratios
Dividend Payout Ratio Cash
Profit
Earnings Per Share
Balance sheet
Hindalco Industries
Standalone Balance
Sheet
------------------in Rs. Cr. -----------------Mar '13
12 mths
Mar '12
12 mths
Mar '11
12 mths
Mar '10
12 mths
Mar '09
12 mths
Total Share Capital
191.48
191.48
191.46
191.37
170.46
Equity Share Capital
191.48
191.48
191.46
191.37
170.05
Share Application
Money
541.31
541.31
4.47
3.99
3.17
Sources Of Funds
Preference Share
Capital
Reserves
0
0
0
0
0.41
33,239.60 31,299.68 29,504.17 27,715.61 23,584.69
Revaluation Reserves
Networth
0
0
0
0
0
33,972.39 32,032.47 29,700.10 27,910.97 23,758.32
Secured Loans
20,521.01 11,276.16
5,170.31
5,153.90
5,713.23
Unsecured Loans
Total Debt
3,623.76 3,295.75
24,144.77 14,571.91
2,101.19
7,271.50
1,203.00
6,356.90
2,611.06
8,324.29
Total Liabilities
58,117.16 46,604.38 36,971.60 34,267.87 32,082.61
Mar '13
12 mths
Mar '12
12 mths
Mar '11
12 mths
Mar '10
12 mths
Mar '09
12 mths
Application Of Funds
Gross Block
Less: Accum.
Depreciation
14,985.37 14,478.11 14,287.32 13,793.35 13,393.07
7,887.72
7,327.67
6,702.94
6,058.53
5,506.10
Net Block
7,097.65
7,150.44
7,584.38
7,734.82
7,886.97
Capital Work in
Progress
23,605.12 17,654.38
9,464.05
3,702.79
1,389.63
Investments
20,482.13 18,087.10 18,246.75 21,480.83 19,148.84
Inventories
7,702.61
7,742.86
7,652.19
5,921.41
4,070.14
Sundry Debtors
1,515.04
1,427.45
1,268.99
1,311.87
1,201.22
Cash and Bank
Balance
1,497.82
565.19
111.12
139.96
213.48
Total Current Assets
10,715.47
9,735.50
9,032.30
7,373.24
5,484.84
Loans and Advances
4,718.19
2,976.26
1,750.22
1,588.62
1,709.16
157.39
122.27
0.25
630.24
15,433.66 12,869.15 10,904.79
8,962.11
7,824.24
Fixed Deposits
Total CA, Loans &
Advances
Deffered Credit
Current Liabilities
7,141.03
7,949.49
8,583.69
6,891.19
3,363.91
Provisions
1,360.37
1,207.20
644.68
721.49
803.16
Total CL & Provisions
8,501.40
9,156.69
9,228.37
7,612.68
4,167.07
Net Current Assets
6,932.26
3,712.46
1,676.42
1,349.43
3,657.17
Miscellaneous
Expenses
Total Assets
Contingent Liabilities
Book Value (Rs)
58,117.16 46,604.38 36,971.60 34,267.87 32,082.61
4,299.64
174.61
8,537.29 11,333.90 18,607.32
164.48
155.12
145.85
9,775.80
139.71
Profit & Loss
Hindalco Industries
Profit & Loss account
in Rs. Cr
Mar '13
Mar '12
Mar '11
Mar '10
Mar '09
12 mths
12 mths
12 mths
12 mths
12 mths
Income
Sales Turnover
26,056.93 28,296.96 25,255.01 20,516.43 19,641.40
Excise Duty
Net Sales
0 1,704.40 1,497.87 1,059.45 1,481.59
26,056.93 26,592.56 23,757.14 19,456.98 18,159.81
Other Income
Stock Adjustments
983.09
674.01
304.25
574.62
712.66
-134.95
411.53
403.63
765.87
-537.81
Total Income
Expenditure
26,905.07 27,678.10 24,465.02 20,797.47 18,334.66
Raw Materials
17,723.99 18,557.05 16,435.73 13,666.78 10,855.14
Power & Fuel Cost
3,073.04
2,870.67
2,221.48
1,938.00
2,231.56
Employee Cost
1,200.80
1,112.06
1,054.39
904.9
675.05
Other Manufacturing
Expenses
225.82
255.84
200.32
143.46
Selling and Admin
Expenses
647.81
552.73
535.63
447.53
1,737.68
686.15
471.46
386.5
357.12
-91.85
-390.3
-335.78
Miscellaneous
Expenses
Preoperative Exp
Capitalised
Total Expenses
23,735.51 24,007.71 20,601.33 17,296.35 14,709.86
Mar '13
Mar '12
Mar '11
Mar '10
Mar '09
12 mths
12 mths
12 mths
12 mths
12 mths
2,186.47
3,169.56
435.98
2,733.58
2,996.38
3,670.39
293.63
3,376.76
3,559.44
3,863.69
610.26
3,253.43
2,926.50
3,501.12
613.78
2,887.34
2,912.14
3,624.80
336.93
3,287.87
686.95
689.97
687.48
671.36
644.34
Other Written Off
Profit Before Tax
2,046.63
2,686.79
2,565.95
2,215.98
2,643.53
Extra-ordinary items
50.16
39.63
157.6
198.55
PBT (Post Extra-ord
Items)
Tax
2,046.63
347.43
2,736.95
499.75
2,605.58
468.66
2,373.58
462.1
2,842.08
610.88
Reported Net Profit
1,699.20
2,237.20
2,136.92
1,915.63
2,230.27
Total Value Addition
6,011.52
5,450.66
4,165.60
3,629.57
3,854.72
0.02
268.05
296.76
287.17
258.32
229.58
31.67
38.41
46.59
42.9
39.03
Operating Profit
PBDIT
Interest
PBDT
Depreciation
Preference Dividend
Equity Dividend
Corporate Dividend
Tax
Per share data (annualised)
Shares in issue (lakhs)
19,145.83 19,145.83 19,143.98 19,134.62 17,002.71
Earning Per Share
(Rs)
8.88
11.69
11.16
10.01
13.12
Equity Dividend (%)
140
155
150
135
135
174.61
164.48
155.12
145.85
139.71
Book Value (Rs)
COMMENTS
1) Hindalco managed to survive market despite slowdown in 2008 after recession. Hindalco
s operating profit margin kept on declining from 2009 from 16.03, and with continuous
decline in each year it almost reached to a level of operating profit of 8.39 in the year
2013.
2) The Gross profit margin(%) is also declining from march 2009 to march 2013 i.e. 6.53
3) The Net profit margin(%) is also declining but not at high percentage
4) Debt equity ratio of company from march 2009 to 2013 is increasing. i.e in march 2009
the ratio is 0.35 and then in march 2013 the ratio is 0.72
