core sector communique

HNG posts record numbers in Q3 with net profit up by 62% to Rs. 131 Cr. YoY

 

• Records 88% increase in PBT to Rs. 156 Cr. YoY
• Announces initial investment of Rs. 350 Cr. in a Greenfield project in AP
• Trustees okay partial sale of treasury shares – proceeds to be handed to company

 

 

Kolkata, January 19, 2010: Hindusthan National Glass & Industries Ltd, one of the frontrunners in the Indian packaging industry with a 60% dominant market share in glass packaging today announced its financial results for the third quarter ended December 31, 2009. The company’s focus to improve on its manufacturing efficiencies and cost optimization has resulted in an enhanced bottomline (PAT), registering an increase of 62% in the third quarter to Rs. 131 Cr. from Rs. 81 Cr. in the corresponding period last fiscal. HNG recorded an EBIDTA of Rs.256 Cr. as against EBIDTA of Rs. 185 Cr. in the same period in the last year registering a growth of 38%.  The net sale in the nine month period is Rs. 982 Cr. as compared to Rs. 968 cr. for the same period last year.

 

The revenue of the Company in 9 months is Rs.1013 Crores with EBIDTA of Rs.256 Crores at 26.03% to Sales.  EPS (not annualized) this year so far is Rs.14.98 per Share on a Face Value of Rs. 2 each, giving a Book Value per Share of Rs. 122. 

 

Commenting on the future outlook of the company which comprises setting up of a Greenfield project in Andhra Pradesh fuelled by the growing demands of the liquor, food and beverage industry, Mr. Mukul Somany, Joint Managing Director, Hindusthan National Glass and Industries Ltd. said “We are on a high growth path indicative from the targeted increase in production capacities. We have already earmarked investment of an initial amount of Rs. 350 Cr. for setting up a Greenfield project in Andhra Pradesh. We are in the process of finalising the agreement with AP Government, post which we aim to set up a flint glass manufacturing plant with a capacity of 450 tonnes per day.”  He further added, “The Greenfield project will be funded through a mix of internal accruals as well as debt.”

 

In addition to this, the trustees have given an approval on the sale of the treasury shares to fund the future expansion plans of the company.

 

About Hindusthan National Glass:  

Hindusthan National Glass (HNG) is the largest container glass manufacturers in India with a 60% plus market share and an annual income of more than Rs. 1440 Cr., as recorded in FY 09.  HNG was founded by Mr. C.K. Somany - a visionary entrepreneur in 1952 with the inauguration of India’s first fully automatic glass container manufacturing plant at Rishra, near Calcutta. Headquartered in Kolkata, HNG’s pan-India manufacturing operations are spread over six centres Rishra, Bahadurgarh, Rishikesh, Puducherry, Nashik and Neemrana and its products are available in more than 20 countries. The company possesses an operational capacity of 11 furnaces and 44 production lines with fully-automated IS machines, sourced from reputed global technology providers of glass industry from Europe and US.