Hindalco Industries rose 3.31% to Rs 154.50 at 11:05 IST on BSE after the company further clarified on the Supreme Court cancelling coal block allocation.
Meanwhile, the BSE Sensex was up 14.18 points, or 0.05%, to 26,482.54
On BSE, so far 5.01 lakh shares were traded in the counter, compared with an average volume of 10.15 lakh shares in the past one quarter.
The stock hit a high of Rs 155.50 and a low of Rs 146.10 during the day. The stock hit a 52-week high of Rs 198.70 on 25 July 2014. The stock hit a 52-week low of Rs 96.95 on 24 February 2014.
The stock had underperformed the market over the past one month till 25 September 2014, falling 9.17% compared with 0.12% rise in the Sensex. The scrip also underperformed the market in past one quarter, falling 10.23% as against Sensex's 4.56% rise.
The large-cap company has an equity capital of Rs 206.49 crore. Face value per share is Re 1.
In clarification to the Supreme Court cancelling coal block allocations, Hindalco Industries after market hours on Thursday, 25 September 2014 said that at a suggested levy of Rs 295 per tonne on coal, the total one time impact on the company would be around Rs 500 crore. In any case, the company was not expecting the captive coal immediately and it has plans to operate on purchased coal. The only incremental impact because of the cancellation of coal blocks would be on the cost of production at Hirakud smelter starting April 2015, which is not expected to be significant, Hindalco Industries said.
Hindalco Industries said during market hours on Thursday, 25 September 2014 that the company had been allocated four coal blocks namely, Mahan coal block jointly with Essar Power, Tubed coal block jointly with Tata Power, Talabira II & III coal blocks jointly with Mahanadi Coal Fields and Neyveli Lignite Corporation and Talabira I coal block. Mahan, Tubed and Talabira II & III coal blocks are not yet in operation while Talabira I coal block feeds coal to the power plant which supplies power to company's Hirakud Smelter.
With respect to the media report titled "Hindalco might sell land in Mumbai," the company clarified during market hours on Thursday, 25 September 2014 that it constantly evaluates various value optimization options with respect to the non-productive assets of the company including the land located at Kalwa, Thane.
The Supreme Court in its final verdict announced on Wednesday, 24 September 2014, scrapped 214 out of 218 coal blocks allocated between 1993 and 2010 it had already declared illegal due to irregularities in the allocation of the blocks. The four coal blocks which are exempt from the verdict are run by the Central government with no joint venture with the private sector. Meanwhile, the Supreme Court gave six months' breathing time for the operational blocks to wind up operations. As per the order, allottees will have to pay a fine of Rs 295 per tonne from the time the coal was mined.
A bench headed by Chief Justice R M Lodha last month had held that all coal blocks allocations since 1993 by various regimes at the Centre have been made illegally and arbitrarily. However, it had stopped short of cancelling them saying, what the consequences will be is the issue which remains to be tackled.
Shares of Hindalco Industries have been on sustained downtrend, sliding 17.85% to Rs 149.55 on 25 September 2014 from its close of Rs 182.05 on 22 August 2014. The fall was triggered by the Supreme Court on 25 August 2014 terming the method of allotment of coal blocks since 1993 as illegal.
Hindalco Industries' net profit declined 30.9% to Rs 327.50 crore on 37.5% growth in net sales to Rs 7930.55 crore in Q1 June 2014 over Q1 June 2013.
Hindalco Industries is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world's largest custom smelter at a single location.
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