03-Aug-16 Haldia Petrochemicals is set to post a three-fold increase of in its top line at Rs 10,000 crore for 2015-2016, as per company sources.
In 2014-15, plant shutdown from July 2014 to January 2015 due to acute cash crunch pulled down revenue at only Rs 3,097 crore. In 2013-14, HPL earned Rs 8,130 crore though posting net losses.
“At this time, the economy is upbeat as we too are upscale and are utilising 95% of the 7 million tons of installed capacity,” a senior HPL official told Business Standard. For 2014-15, HPL’s gross profit stood at Rs 498.6 crore. For 2015-16, too, the firm is bullish on reaping profits. Nevertheless, its accumulated consolidated losses account for Rs 3,662 crore as on March 31, 2015.
During 2011-12, the situation in HPL started worsening as operations got seriously affected due to cash crunch, taking the company on the verge of being reported to the Board for Industrial and Financial Reconstruction. This implied that its accumulated losses were half its peak net worth. While the debt situation of HPL has remained stagnant at Rs 4,000 crore, the company has been able to stage a turnaround last year, improving its operating margins.
As on April 23, 2016, HPL’s assets stood at Rs 264 crore. Nevertheless, servicing the existing loans, which account for Rs 630 crore a year will continue to be a drag on the company. “We are now aiming to consolidate our business entities so that we may improve our operational performance,” a senior HPL official told Business Standard.
It has already approached the Calcutta High Court to amalgamate Haldia Cracker Complex (HCCL) and Bengal Cracker Complex (BCCL) – its wholly owned subsidiaries - with itself, which will increase the company’s paid-up capital.
HCCL has a paid-up capital of Rs 617.56 crore, while BCCL has a Rs 203 crore paid-up capital which will get added to the Rs 1,959 crore paid-up capital of HPL after the merger.
