Hind Aluminium Industries Ltd updates on business

Hind Aluminium Industries Limited has been unable to secure orders over a considerable period of time for its products at its unit at Silvassa (UT) (India). Silvassa unit has accounted for 88.56% of revenues from operations amounting to Rs. 84.73 Crs. out of the total consolidated revenue of the Company for the year ended March 31, 2021. The business of the Company is heavily dependent on access to working capital which has not been available and is a significant cause, impacting the domestic manufacturing operation of the Company adversely. The credit rating of the Company's long term facilities is Care BB+ and for short term facilities is A4. The uncertainty around Covid-19 pandemic has additionally impacted the operations of infrastructure projects resulting in delays and disruption.

Further, the subsidiary of the Company namely, Hind Aluminium Industries (Kenya) Limited (based in Kenya), has been also unable to get orders over a period of time. Further. along with the on-going Covid-19 pandemic which has disrupted the operations in Kenya, and of this subsidiary, the said subsidiary has not undertaken any manufacturing activities during the on-going FY2021-22. Additionally, the said subsidiary is heavily dependent on the support of the parent company.

Based on the aforesaid facts, the Company needs to evaluate the feasibility of operating the manufacturing unit at Silvassa and the manufacturing unit of the subsidiary at Kenya. The management is looking at various options on the future of the units.

Source : Equity Bulls

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HindAluminiumIndustries BusinessUpdate BusinessImpact Silvassa Kenya