Hindustan Copper spurted 5.52% to Rs 37.30 after the company's consolidated net profit rose 40% to Rs 29.69 crore on 42% increase in net sales to Rs 431.43 crore in Q1 June 2020 over Q1 June 2019.
The company said revenue during the quarter mainly include sales valuing Rs 324.54 crore on account of unsold year end closing stock. The result was announced after market hours yesterday, 10 September 2020.Consolidated profit before tax stood at Rs 24.72 crore in Q1 June 2020, a 22.2% decline over Rs 31.78 crore in Q1 June 2019. Current tax expense fell 48.2% to Rs 6 crore during the period under review.
Hindustan Copper said its board could not deliberate on various proposals, including raising of up to Rs 200 crore via preference shares, at its meeting on Thursday due to paucity of time.
The proposals include considering and recommending to the Ministry of Mines for allowing issuance of 20 lakh preference shares of face value of Rs 1,000 each aggregating to Rs 200 crore of compulsorily convertible preference share for the purpose of meeting expansion/ capex plan and general corporate purpose.
The board also could not take up a proposal to modify the object clause of its qualified institutional placement (QIP) to 'expansion/ capex plan and general corporate purpose' in place of 'expansion/capex plan'.
The proposal to consider and recommend seeking approval of shareholders for the overall borrowing limit of Rs 2,500 crore for all types of borrowings/ loans including bonds across various products, together with interest, and for creation of security as may be required for the borrowing also could not be considered by the board, the company said.
Shares of Hindustan Copper gained for second trading session. The counter has surged nearly 8% in two days. The counter is up 103.8% from its 52-week low of Rs 18.30 hit on 25 March 2020.
Hindustan Copper is engaged in exploration, exploitation, mining of copper and copper ore, including beneficiation of minerals, smelting and refining. The firm manufactures and markets copper cathode, continuous cast copper wire rod and metal in concentrate. The company also offers copper concentrate.
As of 30 June 2020, the Government of India holds 76.05% stake in the copper producer.
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