Hind Copper may get nod for 20% stake sale

KOLKATA: The Cabinet is likely to approve the plan to divest a 20% stake in Hindustan Copper within the next two weeks, CMD Shakeel Ahmed said, even as a higher-than-average global copper prices of $6,101 per tonne and 30% higher production led Hindustan Copper to a net profit of Rs 154 crore in 2009-10. Compared to this, the company had reported a loss of Rs 10.3 crore in 2008-09.

A bulk of its profits came from higher copper prices, which prevailed during the final quarter (Jan-March 2010). Hindustan Copper reported a net of Rs 91.7 crore in Q4 of 2009-10 compared to Rs 3.8 crore in Q4 of 2008-09. During the period under review, a 30% higher volume of production, compared to April-November 2009, also worked to the company’s advantage. Net sales for 2009-10 crossed Rs 1,304 crore in 2009-10 against Rs 1,190 crore in 2008-09. In Q4 of 2009-10, its net sales jumped to Rs 409.8 crore against Rs 344.7 crore in same period last year.

Commenting on the status of disinvestment, Mr Ahmed said, while all concerned ministries have approved the plan, the proposal is now with the law ministry, which is likely to clear it in a day or two.