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Ms. Anu sheetal Sinha Manjit PaulRoll.no:R1903A23Reg.no:10902965Class: R1903

ACKNOWLEDGEMENT

Through my gratitude towards my supporters yet we like to add a few hearts full for the people who were part of this case study in numerous ways. People who gave understanding support right project ideas were conceived. First we want to thank Ms. Anu Sheetal, Lecturer financial management, lovely professional university, phagwara for assigning this term paper & we also want to give hands full gratitude to him for his help & guidance. We would like to thank all the faculty of lovely school of business for having faith in us, & for their kind inspiration and helping us whenever asked.

Last but not least, we expand us heartiest gratefulness all people who have given us best wishes & all help that we needed for the completion of the term paper.

Contents

Literature review Objective of the study introduction

company, background, history, management

Company position relative to industry

Change in its share price over a year

Capital structure for last 3 years

Liquidity position

financial credibility through balance sheet, profit and loss account

Credit rating of company

IPO issues made by companies during last 5 years

Track and report news relevant to company chronologically and its impact on share price of the company

Conclusion

references

Literature reviewA literature review is a body of text that aims to review the critical points of current knowledge and or methodological approaches on a particular topic. For this I used the secondary data as well as primary data. Secondary data: For taking secondary data I searched the website of company and other websites related to it. Primary data: For taking primary data I take information from economic times and business standard newspaper.

Objective of the studyMain objective of the study is to analyze the hindalco company. its background, history, management, change in share price over the years, its capital structure and every ins and outs about the company and its relative position as compare to industry.

Introduction

Indian aluminum sector is characterized by large integrated players like Hindalco, Hindalco Industries Limited, a flagship company of the Aditya Birla Group, is structured into and copper with annual revenue of US $14 billion and a market capitalization in excess of US $ 23 billion. Hindalco commenced its operations in 1962 with an aluminum facility at Renukoot in Uttar Pradesh. Birla Copper, Hindalco's copper division is situated in Dahej in the Bharuch district of Gujarat. Established in 1958, Hindalco commissioned its aluminum facility at Renukoot in eastern U.P. in 1962 and has today grown to become the country's largest integrated aluminum producer and ranks among the top quartile of low cost producers in the world. The aluminum division's product range includes alumina chemicals, primary aluminum ingots, billets, wire rods, rolled products, extrusions, foils and alloy wheels. It enjoys a domestic market share of 42 per cent in primary aluminum, 63 per cent in rolled products, 20 per cent in extrusions, 44 per cent in foils and 31 per cent in wheels. Hindalco has launched several brands in recent years, namely Aura for alloy wheels, Freshwrapp for kitchen foil and ever last for roofing sheets. The copper plant produces copper cathodes, continuous cast copper rods and precious metals like gold, silver and platinum group metal mix. Sulphuric acid, phosphoric acid, di-ammonium phosphate, other phosphatic fertilisers and phospho-gypsum are also produced at this plant. Hindalco Industries Limited has a 51.0%shareholding in Aditya Birla Minerals which has mining and exploration activities focused in Australia. The company has two R&D centers at Belgaum, Karnataka and Taloja, Maharashtra. They have been recognized by the Government of India's Department of Scientific and Industrial Research (DSIR). [Exhibit 1] Year over year, Hindalco Industries Ltd. has been able to grow revenues from 121.2B to 193.2B. Most impressively, the company has been able to reduce the percentage of sales devoted to selling, general and administrative costs from 4.15% to 2.96%. This was a driver that led to a bottom line growth from 15.8B to

26.9B.

Company Background - Hindalco Industries

Industry Name AluminumHouse Name Birlas (Aditya Vikram) GroupCollaborative Country Name N.A.Year of Incorporation 1958.Regd. OfficeAddress Century Bhavan, 3rd Floor,District MumbaiStateMaharashtraPin Code 400030

Hindalco embarked on its journey in 1958. Its first real contribution to the vision of an industrial India occurred four years later, when the visionary — late Mr. G.D. Birla set up India's first integrated aluminum facility at Renukoot, in the eastern fringe of Uttar Pradesh, India. It was backed by a captive thermal power plant at Renusagar in 1967. Hindalco attained its leadership position in the aluminum industry under the dynamic leadership of the late Mr. Aditya Vikram Birla — a formidable force in the Indian industry.And it was through the vision and guidance of Mr. Kumar Mangalam Birla, the Group Chairman that the business segments of aluminum and copper are consolidated to make Hindalco the non-ferrous metals powerhouse it is today. This was achieved in part by expansion through mergers and acquisitions with companies such as Indal and Birla Copper. Hindalco also secured copper reserves and amplified its operating base by acquiring the Australian Nifty and Mt. Gordon copper mines.

Over the years, Hindalco has grown into the largest vertically integrated aluminum company in the country and among the largest primary producers of aluminum in Asia. Its copper smelter is today the world's largest custom smelter at a single location.

In 2007, the landmark acquisition of Novelis Inc., the world's largest aluminum rolling company, placed Hindalco's footprint across the globe, securing it a rank amongst the top five global aluminum majors and also placing it in the Fortune 500 league.

History

Starting from 1958, the Company was incorporated on 15th December, at Mumbai to Manufacture alumina, aluminum and aluminum fabricated items.

The Company was Formed by the house of Birlas in collaboration with the Kaiser Organization of U.S.A.then in 1960,2,50,000 Pref. & 58, 50,000 equity shares issued through a prospectus of which 4,80,000 shares allotted without payment in cash to Kaiser Aluminum Corporation and 9,61,000 shares against cash. 1,20,000 shares to Kaiser Aluminum Technical Services Inc. allotted without payment in cash 21,33,000 shares to Birla Gwalior Pvt. Ltd. & 21,56,000 shares to public. In 1961, Rate of dividend on pref. shares altered. In 1962, 10,750 No. of equity shares & 300 pref. shares forfeited. Forfeiture on 2,250 No. of equity shares annulled. In 1964 the Properzi mill plant was set up for the production of redraw rods with a rated capacity of 6,000 tons per annum. In 1965 an extrusion press and rolling mill for the production of aluminum extrusions and rolled products (sheets, etc.) was installed with rated capacity of 2,000 tones and 7,000 tons respectively, thus bringing the total capacity of the fabrication plant to 15,000 tons per annum.In 1967 another Properzi mill plant was commissioned which expanded the fabrication plant capacity from 15,000 tons per annum to 37,000 tons per annum. then , In 1968,two more extrusion presses and a few additional facilities in rolling mill was erected by the end of the year to get higher production. In 1985 26.69% of the Company's equity capital was held by Kaiser Aluminum & Chemical Corporation, U.S.A., along with their nominees (Kaisers) aggregating to 35,73,332 equity shares of Rs 10 each as on 31st December. in 1990, During January-February, the Company issued 53,54,595-12.5% secured redeemable partly convertible debentures of Rs 250 each on Rights basis in the proportion 3 debentures: 10 equity shares held. Additional 8,03,189 debentures were allotted to retain oversubscription. In 1991,the Company issued 40,00,000-17.5% redeemable non-convertible debentures of Rs 100 each to financial and other institutions on private placement basis. In 1994,the Company proposed to further expand the smelting capacity to 2,42,000 tones p.a. with an up gradation of all attendant plants In 2000 The board of directors has approved entering into an agreement with Alcan Aluminum Ltd of Canada, for purchase of 3,88,44,324 shares constituting 54.6 per cent of the paid-up capital of Indian Aluminum Co. Ltd. Rs. 190 per share. Now in 2006,Hindalco Industries Ltd has announced that on October 30, 2006 the Company has entered into a Joint Venture partnership with ALMEX USA, Inc., for the manufacture of High Strength Aluminum Alloys for applications in the aerospace, sporting goods and surface transport industries.

hindalco-managementHindalco’s management team consists of experienced individuals with strong credentials.Name DesignationKumar Mangalam BirlaChairman / Chair PersonA K Agarwala Non Executive Director

S S KothariNon Executive DirectorM M Bhagat Non Executive DirectorN J Jhaveri Non Executive DirectorName DesignationRajashree Birla Non Executive DirectorE B Desai Non Executive DirectorC M Maniar Non Executive DirectorK N Bhandari Non Executive DirectorD Bhattacharya Managing Director

hindalco' position relative to industrySalesTurnover

Net Profit Total Assets

Hindalco 18,219.65 2,079.44 32,082.61

NALCO 5,230.80 1,272.27 9,769.81

India oils 98.94 -148.82 -10.37

Century Extr 98.56 2.80 49.14

Man Aluminium 41.95 0.71 27.48

Hindalco’s sale’s turnover rs.18219.65 is highest than all other companies in the same pace it acquired highest net profit (rs. 2,079.44) and larger assets than it’s peer groups reflect it’s strong market position in the domestic aluminum industry, its superior operating efficiency resulting in it being one of the lowest cost aluminum producers globally and its strong financial position, which is characterized by low gearing, large cash accruals in relation to debt and strong liquidity. The ratings factor in the restructuring announced by the Aditya Birla group under which Indo Gulf Corporation Ltd’s (Indo Gulf) copper business would be hived off and merged with Hindalco. Further, as part of this restructuring, Hindalco has made a voluntary open offer to buy the remaining 25.4 per cent shares of its subsidiary, Indian Aluminum Company Limited (Indal, rated AAA, P1+ by Crisil), following which it will delist Indal. Strong market position: Hindalco has a strong market position in

the domestic aluminium industry, in which it is the largest player with a capacity of 275,000 tpa. Further, it is the largest domestic player in the semi-fabricated (semifab) aluminium products segment. Its market position is further enhanced through its subsidiary, Indal, which is a leading player in the semifab segment.

Superior operating efficiency : Hindalco has fully integrated operations from mining bauxite to manufacturing downstream aluminium products. It has captive power, which is a critical input in manufacturing aluminium. Its performance on various operating parameters is favourable. These strengths result in Hindalco’s cost of production being among the lowest in the world.

Strong financial position : Hindalco’s business strengths are reflected in its strong financial position. Its low-cost structure results in high profit margins.

change in share price over 1 year

there is a significant change in the share price of the hindalco company on national stock exchange from 13april 2009 to 26 feb 2010.

share price change dramatically from Rs. 58 to Rs 188.there was lot of fluctuations in share price. Share price rose sharply in the month of September to February.

on 13 april,share price of hindalco is at rs.58 then on 29th may ,it s' high value rise significantly to 95rs. and its lower value also rose but les sharply than the higher value to rs. 76.afer tis ,on 13 July 2009,higher value decrease in a fluctuating way from rs. 95 to rs, 70 but lower value of share remains constant with slight but negligible fluctuations.

over a period of 13-07-09 to 25-08-09 value of share further hiked by large amount and then lies nearer to 100 with smaller value stable at Rs. 76.there were large fluctuations in the end of September.

in 12 oct, value share plunged to higher value Rs.133 and lower value increase steadily around Rs.80.

on 26 nov,value of share rise nearer to Rs.150 lower value remains stable with little e fluctuations.

share price were at peak on 13 jan,2010 and then fell sharpley to Rs. 140 and lower value ramins stable.

now share price is at its highest possible value i.e. 188.40 Rs. and lower value to Rs. 52.

Capital structure for at least 3 years

From Year To YearClass Of Share

Authorized Capital Issued Capital

Paid Up Shares (Nos)

Paid Up Face Value

Paid Up Capital

2008 2009 Equity Share 195.00 170.15 1700817056 1 170.082007 2008 Equity Share 145.00 122.72 1227190692 1 122.722006 2007 Equity Share 145.00 115.93 1159329501 1 115.93

Hindalco is characterized as unleveled company who is using only equity to finances its assets.2006-07: paid up capital in 2006 is 115.93 then it suddenly hiked to 122.5 in 2007. which is financially very risky. so management should act wisely.2007-08: paid up capital in 2007 is 122.5 then it rose to 170.08. company s taking very financial risk which can be dangerous for it. so management should think about it.

Liquidity positionKey Financial Ratios of Hindalco Industries ------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09

Investment Valuation Ratios

Face Value 1.00 1.00 1.00 1.00

Dividend Pe r Share 2.20 1.70 1.85 1.35

Operating Profit Per Share (Rs) 21.79 34.60 26.64 17.12

Net Operating Profit Per Share (Rs) 97.95 157.96 155.79 106.77

Free Reserves Per Share (Rs) 77.84 103.16 138.43 86.29

Bonus in Equity Capital 49.89 47.13 40.09 28.92

Profitability Ratios

Operating Profit Margin(%) 22.25 21.90 17.10 16.03

Profit Before Interest And Tax Margin(%)

17.35 18.55 13.64 12.07

Gross Profit Margin(%) 22.08 22.27 14.02 12.48

Cash Profit Margin(%) 18.75 16.72 14.31 13.76

Adjusted Cash Margin(%) 17.94 16.90 14.31 13.76

Net Profit Margin(%) 14.29 13.76 14.56 11.87

Adjusted Net Profit Margin(%) 13.43 13.91 14.56 11.87

Return On Capital Employed(%) 15.37 19.07 12.44 9.00

Return On Net Worth(%) 17.23 20.65 16.54 9.38

Adjusted Return on Net Worth(%) 16.20 20.88 12.83 8.16

Return on Assets Excluding Revaluations

8.76 10.25 9.24 --

Return on Assets Including Revaluations

8.76 10.25 9.24 --

Return on Long Term Funds(%) 17.77 20.03 13.56 9.72

Liquidity And Solvency Ratios

Current Ratio 1.12 1.22 1.08 1.20

Quick Ratio 0.73 0.66 0.53 0.88

Debt Equity Ratio 0.51 0.59 0.48 0.35

Long Term Debt Equity Ratio 0.31 0.52 0.37 0.25

Debt Coverage Ratios

Interest Cover 11.37 20.90 13.63 10.43

Total Debt to Owners Fund 0.51 0.59 0.48 0.35

Financial Charges Coverage Ratio 12.23 17.87 13.53 10.48

Financial Charges Coverage Ratio Post Tax

10.68 13.88 13.30 9.53

Management Efficiency Ratios

Inventory Turnover Ratio 2.83 4.32 4.32 5.16

Debtors Turnover Ratio 11.16 13.30 12.46 13.13

Investments Turnover Ratio 3.22 4.89 4.32 5.16

Fixed Assets Turnover Ratio 1.57 2.30 1.53 1.37

Total Assets Turnover Ratio 0.79 0.93 0.74 0.57

Asset Turnover Ratio 1.10 1.64 1.53 1.37

Average Raw Material Holding 86.77 42.95 58.22 49.40

Average Finished Goods Held 5.30 4.20 5.60 3.66

Number of Days In Working Capital 92.47 51.60 51.35 72.50

Profit & Loss Account Ratios

Material Cost Composition 60.88 62.46 65.31 59.77

Imported Composition of Raw Materials Consumed

84.66 89.50 90.35 86.35

Selling Distribution Cost Composition 2.19 1.60 1.62 1.75

Expenses as Composition of Total Sales

32.14 38.10 33.65 28.38

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 14.93 7.88 9.27 12.04

Dividend Payout Ratio Cash Profit 11.34 6.47 7.68 9.34

Earning Retention Ratio 84.11 92.20 88.05 86.16

Cash Earning Retention Ratio 88.11 93.58 90.56 89.61

Adjusted Cash Flow Times 2.36 2.34 2.96 3.22

Mar '06 Mar '07 Mar '08 Mar '09

Earnings Per Share 14.28 22.12 23.31 13.11

Book Value 82.86 107.11 140.94 139.67

Liquidity position of company can be shown by liquidity and solvency ratios.current ratio of company is increased in mar06 and mar-07 from 1.12 to1.22, then it suddenly decreased to 1.08 in mar 08.it shows that company is not using its current assets efficiently. as it should be in ratio 2:1.as company’s decreased current ration shows that hindalco’s ability to meet the short term securities is very less.Quick ratio : quick ration of company is also decreasing from year mar 06 to mar 06 as it should be 1:1.It shows that company can’t handle its financial commitments effectively.

Therefore solvency position of the company is degrading

Financial credibility through balance sheet, profit and loss AccountProfit and loss account

 

  Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05

IncomeOperating income 18,159.81 19,118.01 18,312.93 11,355.15 9,523.25

ExpensesMaterial consumed 11,392.95 12,344.83 10,994.42 5,879.57 4,661.94Manufacturing expenses  2,375.02 2,026.73 2,080.80 1,972.22 1,702.44Personnel expenses 675.05 631.07 529.58 466.26 414.13Selling expenses 318.54 310.60 293.82 249.62 238.85Administrative expenses 487.04 535.38 403.55 260.83 233.33Expenses capitalized - - - - -Cost of sales 15,248.60 15,848.60 14,302.17 8,828.49 7,250.69Operating profit 2,911.21 3,269.41 4,010.77 2,526.65 2,272.56Other recurring income 621.10 527.95 321.13 227.64 207.81Adjusted PBDIT 3,532.31 3,797.36 4,331.89 2,754.29 2,480.38Financial expenses 336.93 280.63 242.39 225.17 169.96Depreciation  644.34 587.81 552.80 516.68 463.26Other write offs - 3.62 4.00 6.29 6.07Adjusted PBT 2,551.04 2,925.30 3,532.70 2,006.15 1,841.09Tax charges  610.88 705.34 940.30 450.15 646.39Adjusted PAT 1,940.16 2,219.97 2,592.40 1,556.01 1,194.71Nonrecurring items 91.56 43.23 -37.61 56.17 53.13Other non cash adjustments 198.55 597.74 9.54 43.37 81.52Reported net profit 2,230.27 2,860.94 2,564.33 1,655.55 1,329.36Earnings before appropriation 2,530.27 2,959.38 2,619.33 1,710.55 1,384.36Equity dividend 229.58 226.89 177.34 216.84 185.56Preference dividend 0.02 0.02 - - -Dividend tax 39.03 38.56 24.87 30.41 26.42Retained earnings 2,261.64 2,693.90 2,417.11 1,463.30 1,172.38

Operating income of company is increasing as it is increasing from mar 06 to mar08, in mar 06-07 it hiked with 11355.15 to 18312.93,then in mar 08,it increased to rs.19118.01. rise in operating income shows growth of company.Operating profit: operating profit is also increasing from 2526.25 to4010.77 and 5010.8. this rise shows further growth of company.Retained earnings: are also hiked from 1463.3 to 2417.11 and then further rise to rs.2693.9.This retained earnings show company’s path to growth.

Balance sheet:

FY 09 FY 08 FY 07 FY 6

Source of funds

Shareholders’ funds

Share capital 104.3 98.6 92.8 92.5

Reserves and surplus 12,313.7 9,507.7 7,573.8 6,765.4 6,098.6

  12,418.0 9,606.3 7,666.6 6,857.9 6,191.1

Loan funds

Secured loans 6,410.2 2,848.0 2,952.3 1,725.9 2,049.3

Unsecured loans 958.4 2,055.4 847.7 838.7

345.8

  7,368.6 4,903.4 3,800.0 2,564.6 2,395.1

Deferred tax liability (net) 1,125.8 1,233.3 1,129.7 995.1 849.0

Total 20,912.4 15,743.0 12,596.3 10,417.6 9,435.2

Application of funds

Fixed assets

Gross block 11,252.6 10,418.3 8,772.8 6,658.5 5,668.0Less: depreciation & impairment

4,245.9 3,635.5 3,169.3 1,918.3 1,607.0

Net block 7,006.7 6,782.8 5,603.5 4,740.2 4,061.0

Capital work-in-progress 1,476.4 832.9 1,323.0 467.7 802.4

  8,483.1 7,615.7 6,926.5 5,207.9 4,863.4

Investments 8,675.3 3,971.3 3,702.1 3,377.2 2,648.4Current assets, loans and advances

Inventories 4,315.3 4,095.1 2,374.5 1,191.3 1,002.2Sundry debtors 1,504.5 1,248.4 787.4 561.1 560.7Cash and bank balance 665.5 917.3 401.0 227.9 303.2Loans, advances and other current assets

1,293.0 1,042.0 913.6 905.9 911.3

  7,778.3 7,302.8 4,476.5 2,886.2 2,777.4Less: current liabilities and provisions

Current liabilities 2,743.4 2,199.6 1,648.4 896.4 706.6

Provisions 1,284.1 953.2 869.8 157.3 147.4

  4,027.5 3,152.8 2,518.2 1,053.7 854.0

Net current assets 3,750.8 4,150.0 1,958.3 1,832.5 1,923.4

Misc. expenditure 3.2 6.0 9.4 - -

Total 20,912.4 15,743.0 12,596.3 10,417.6 9,435.2

Share capital: Balance sheet of hindalco company depicts that there is rise in its share capital from mar 06 to mar 07 with 92.5 to 92.8 then in mar08,it further rise to 98.6.this rise shows that company has strong share capital with which it can boost its growth.Reserve and surplus of company also rise from mar 2006 to mar2008. From mar06 to mar 08,it increased with 6,765.4 to rs9507.7. this shows that company has growing by saving money.Inventory: company’s inventory is also incrementing year by year as from mar 06-mar07,it rises from rs 1191.3 to rs. 2374.5 then it further rise to rs. 2095.1 in mar 08. This hike in inventory shows company’s growth with diversifying operations.Current assets: as company is on growth pace its assets are also increasing, in mar 06 these are rs.1832.5, then in mar 07 these rise to rs.1958.3 then in mar 08 it increases to rs. 4150. This also shows company’s contributing highly towards its assets.

Credit rating of company

Crisil downgrades Hindalco's NCDson 15 may 2007This rating done by rating agency crisil reflects Hindalco's dominant position in the domestic aluminum and copper industries and problem it faced.

Crisil has downgraded its long-term rating on Hindalco Industries Ltd's non-convertible debentures aggregating Rs 1,039 crore to `AA/Stable' from `AAA/Rating Watch with Negative Implications'.

The rating is prominently watched when Hindalco has given offer to acquire Novelis Inc (Novelis, rated `BB-/Negative/B-2' by Standard & Poor's). the completion of deal put hindalco in many complications. crisil said that this downward revision in the long-term rating reflects the increase in Hindalco's financial risk after this largely debt-funded acquisition.

The incidence of a large amount of debt (estimated at $3.1 billion) for funding the acquisition will impact Hindalco's capital structure. Novelist’s profitability and cash accruals are expected to remain subdued over the medium term; therefore, Hindalco will be required to support the large interest burden arising from the debt-funded acquisition.

although crisil expects, Hindalco's large capital expenditure plan of Rs 15,000 crore over the next five years, for capacity enhancements in aluminum and alumina, will preclude any material improvement in Hindalco's capital structure and debt protection indicators. The company's financial risk profile is likely to be strained over the next three to four years, said the ratings agency.

The ratings continue to reflect Hindalco's dominant position in the domestic aluminum and copper industries in which the company accounts for almost half of India's installed capacities.

if we see the safe side then, the `stable' outlook incorporates Crisis’s expectation that Hindalco's strong business profile will help sustain the ratings at the current level, despite medium-term weakening in the financial risk profile due to the largely debt-funded acquisition and implementation of large cape plans.

Crisil expects Hindalco to continue to operate with high financial leverage over the medium term.

"Correction in the capital structure, through further equity

infusion, or higher-than-expected synergy benefits through faster integration, could lend a positive bias to the rating. Conversely, delayed or lower-than-expected equity infusion, large debt-funded capex/acquisitions, or delays in integration, could result in a negative bias to the rating."

rating agency crisil rated hindalco in 2009 as strong domestic aluminum industry

The ratings reflect Hindalco Industries Ltd’s (Hindalco) strong market position in the domestic aluminium industry, its superior operating efficiency resulting in it being one of the lowest cost aluminium producers globally and its strong financial position, which is characterised by low gearing, large cash accruals in relation to debt and strong liquidity.

IPO issues made by companies during last 5 years

2006

Hindalco has managed to raise A$300 million through its maiden issue of 15.36 crore shares at a price of a$1.95 per share on the Australian stock exchange.

2007

- company issued IPO’s in 2007 with its announcement that on October 30, 2007 the Company has entered into a Joint Venture partnership with ALMEX USA, Inc., for the manufacture of High Strength Aluminium Alloys for applications in the aerospace, sporting goods and surface transport industries.

2008

-The company has issued rights in the ratio of 3:7at a premium of Rs.95/- Per Share.

2009

- Company issue equity shares of $600 milion when group flagship firm, has decided to cut its overseas operations and is restructuring its capital expenditure in India in an effort to stabilise operations. As part of this overall plan, Novelis, which Hindalco acquired for $6 billion in 2007, is closing its sheet mill at Rogerstone in the UK, involving 440 job lo

Track and report news relevant to company chronologically and its impact on share price of the

company Top 10 companies net up 25 % in Q1new delhi: beating recession, the top ten private companies led by reliance industries (ril), improved their profits by 25 per cent to about rs 2,750 crore in the first quarter of this fiscal from about 2,100 crore last fiscal. although ril maintained its number one position with a 14 per cent growth in net profit at rs 618 crore during april-june 2001, its group company reliance petroleum (rpl) was outsmarted by fmcg major hindustan lever this time. according to latest company data, hll's net profit from its operations was about rs 347 crore during april-june 2001 as against rs 287 crore in the corresponding period last fiscal. "after including a one-time exceptional income of rs 119.98 crore on account of profit arising from the sale of quest flavours business to ici group, the net profit goes up to rs 466.59 crore," the company clarified. otherwise, hll's net profit from operation was rs 347 crore, which is significantly lower than that of rpl. rpl, which was the turnover topper of last fiscal, logged in a 52 per cent jump in net to rs 456 crore in the last quarter as against rs 300 crore during april-june 2000.itc retained itstobacco major nfosys improved their ranking in the big league outpacing recession-hit old economy majors including hindalco. av birla's hindalco posted a marginal fall in net profit at rs 161 crore the aluminium major had posted a net profit of rs 172 crore but after providing for deferred tax payment, its net was down at rs 161 crore, hindalco said in its website. even in case of bajaj auto, the net profit accounted to rs 118.85 for tax adjustments although its net profit was at rs 120.77 crore during the last quarter. bajaj auto also gained from a rs 45 crore income received from allianz, its foreign partner for general insurance venture. hdfc made it to the top 10 list last quarter with rs 114 crore net profit, which is 19 per cent more than rs 96 crore during april-june 2000. none of the tata group companies figured among the top 10 list in the first quarter. tisco, which was in the list last fiscal, slipped out due to 80 per cent fall in net profit

Result: due to recession price of shares decline but with constant efforts it further hiked with significant profit.

Hindalco profit dips 22% in Q3 MUMBAI: Aditya Birla group company, Hindalco Industries reported a 22% decline in net profit to Rs 427 crore in the third quarter ended December 31, 2009, compared to Rs 545 crore in the correponding quarter

last year. A 66% drop in other income, on account of lower treasury corpus post repayment of the bridge loan taken for the acquisition of Novelis, pulled down the net profit of the company. Higher metal volumes and better copper realisation during the December quarter drove Hindalco's net sales up by 29% to Rs 5,315 crore during the third quarter from Rs 4,117 crore.

Result: this downfall in profit and decrease in sales decreases price of shares of hindalco.

Hindalco to acquire Nifty copper mine in Australia

MUMBAI: Hindalco Industries has said it will acquire a copper mine in Australia for A$79.80 million (around Rs 222 crore), a step towards consolidating the raw material base for its smelter in Gujarat. Hindalco Industries has signed an agreement with Straits Resources (SRL) to acquire the latter's subsidiary, Straits (Nifty), which owns the mine. "The acquisition of Nifty, when completed, will elevate company to an integrated copper producer. then it can source 25 per cent of it's total requirement from captive copper mines .the acquisition also comprises rights to explore in Paterson range located in the richly mineralised Paterson province that hosts known copper and gold ore bodies. result: this deal has vey positive effect on share price of hindalco as this deal further streangthen it's capacity and company is thinking on expansion by making new deals which is making it a global player then obviously.price of it's shared will be increased.

Hindalco to raise $500m

MUMBAI: The board of Hindalco Industries, an Aditya Birla group company, has approved the company's plans to raise $500 million by way of a qualified institutional placement (QIP), the company's chairman Kumar Mangalam Birla said. 

The company had said that in addition to the QIP issue, it would also explore other options such as issuing shares under global depository receipts or any other instrument or a combination of the two. 

This was done taking into account the volatility in domestic market and developments in international markets. The company had said that the amount to be raised would be restricted to $500 million.

all off the above news's shows that first there is sudden decrease in price of shares then again price of shares increased by acquiring nifty then it further raise 500 million dolor by issuing QIP and GDP.

Conclusion

All in all hindalco is a very well established company who has strong market position, superior operating efficiency, having big array of product diversity. Strong market position, limited project risk. Performance of company is degrading in 2006-07-08, but now I regain its position which is very good for company’s growth. Company’s acquisition’s and merger’s make it strong and global player. So hindalco is in good pace now.

References

http://www.religareonline.com/fundamental/InvestorReturn.aspx?CompanyCode=15040001.00&CompanyName=HINDALC

O&MajorSector=1&Ticker=HINDALCO

http://www.financialexpress.com/news/hindalco-industries/58918

http://www.adityabirla.com/media/press_reports/ 200401_global_metals.htm

http://www.hindalco.com/about_us/ management_team.htm

http://www.financialexpress.com/news/hindalco-industries/58918/0

http://www.puntercalls.com/hindalco.html