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