| The company has prepaid its senior lenders and was now on track to head for its public issue with strong earnings per share in the current fiscal. |
| The CDR proposal called for bringing in the fund in the company by way of IPO and induction of a strategic investor by December 31, 2004. HPL was to pay back Rs 468 crore term debt to senior lenders and regularise the working capital by putting in Rs 132 crore for margin build up under the CDR agreement. |
| TCG effected the CDR package of reduction in the interest rate by arranging Rs 143 crore by July 31, 2004. |
| This was followed up by payment of Rs 325 crore by December 31. |
| It regularised the working capital for margin build up as well. HPL, which had to shut operations some years ago because it of a shortage of cash needed to buy feedstock naphtha, was now generating enough fund to meet CDR requirement from internal generation alone and was under no pressure to go to the market or make a private placement. |
| However, the company would still go ahead with its IPO in the first quarter of 2005-6, possibly at a premium, to roll over its entire portfolio and build its brand. |
| HPL posted a profit of Rs 134 crore in the last fiscal. |
| The company was expected to report a sharp rise in profits this fiscal. |
| In the first nine months of this fiscal (2004-05), the company has recorded EBDITA (earning before depreciation, interest, tax and amortisation) of over Rs 1,000 crore with profit before tax (PBT) of Rs 486 crore. |
| In contrast, HPL had posted EBDITA of Rs 843 crore in fiscal 2003-04. HPL may end this fiscal with profit after tax (PAT) in the region of Rs 500-600 crore as its tax burden would be minor. HPL had posted a loss of Rs 518 crore in 2002-3. |
| HPL's gross sales in April-December 2004 of this fiscal crossed Rs 4,300 crore against sales of about Rs 4,200 crore in all of the last fiscal. |
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