Financial Analysis Summary: Hindustan Copper Limited (Quarter ended 30 June 2025)
1. Auditor’s Note
- Type of Report: Limited Review Report on Unaudited Standalone and Consolidated Financial Results for Q1 FY26 (1 April 2025 - 30 June 2025).
- Qualifications/Concerns:
- Non-compliance with Companies Act, 2013:
- The Company does not have Independent Directors, hence no valid Audit Committee meeting could be held. Standalone and Consolidated results were approved by the Board without Audit Committee approval. Non-compliance effective from 3 November 2024.
- The Company does not have a Woman Director w.e.f 22 June 2025, violating Section 149 of the Companies Act, 2013.
- Impact: Auditor’s opinion is unmodified despite these non-compliances.
- Scope Limitation: Review (not audit) performed; limited assurance only.
- Subsidiary and JV Results: Financials of subsidiary (Chhattisgarh Copper Ltd) and JV (Khanij Bidesh India Ltd) reviewed by other auditors; included in consolidated results.
- Non-compliance with Companies Act, 2013:
- Conclusion: No material misstatement noted; results prepared per Ind AS 34 and SEBI regulations.
2. Financial Performance
| Particulars | Q1 FY26 (30 Jun 2025) | Q4 FY25 (31 Mar 2025) | Q1 FY25 (30 Jun 2024) | FY25 (1 Apr 2024 - 31 Mar 2025) | FY24 (1 Apr 2023 - 31 Mar 2024) |
|---|---|---|---|---|---|
| Revenue from Operations (₹ crore) | 516.37 | 731.40 | 493.60 | 2070.96 | Not provided |
| Other Income (₹ crore) | 10.28 | 45.88 | 6.84 | 77.27 | Not provided |
| Total Income (₹ crore) | 526.65 | 777.28 | 500.44 | 2148.23 | Not provided |
| Total Expenses (₹ crore) | 347.29 | 518.75 | 346.32 | 1515.83 | Not provided |
| Profit before Tax (₹ crore) | 179.36 | 258.53 | 154.12 | 632.40 | Not provided |
| Current Tax (₹ crore) | 43.06 | 55.36 | 39.12 | 146.52 | Not provided |
| Deferred Tax (₹ crore) | 2.02 | 13.69 | 1.60 | 18.46 | Not provided |
| Profit after Tax (₹ crore) | 134.28 | 189.48 | 113.40 | 467.42 | Not provided |
| Share of Profit/(Loss) of JV (₹ crore) | (0.03) | (2.31) | - | (2.31) | Not provided |
| Net Profit after Tax & JV (₹ crore) | 134.25 | 187.17 | 113.40 | 465.11 | Not provided |
| Other Comprehensive Income (net of tax) (₹ crore) | (0.13) | 4.95 | (1.84) | (0.55) | Not provided |
| Total Comprehensive Income (₹ crore) | 134.12 | 192.12 | 111.56 | 464.56 | Not provided |
| Equity Share Capital (₹ crore) | 483.51 | 483.51 | 483.51 | 483.51 | 483.51 |
| Earnings Per Share (Basic & Diluted) (₹) | 1.39 | 1.94 | 1.17 | 4.81 | Not provided |
Notes:
- EPS calculated on face value ₹5 per share.
- No exceptional items reported.
- No discontinued operations reported.
- Margins (approximate):
- Q1 FY26: Profit before tax margin ~34.1% (179.36/526.65)
- Q4 FY25: Profit before tax margin ~33.3%
- Q1 FY25: Profit before tax margin ~30.8%
- Profitability improved YoY and QoQ.
3. Detailed Notes / Management Commentary
- Business Segment: Single segment - mining and processing of copper ore and refined copper products.
- Accounting Policies: Prepared as per Indian Accounting Standards (Ind AS 34) for interim reporting.
- Land Lease Issue: Lease deed for Gujarat Copper Project land (gross carrying value ₹44.28 crore) yet to be executed; pending transfer in Gujarat High Court.
- Joint Ventures:
- Chhattisgarh Copper Limited (74% subsidiary) included in consolidated results.
- Khanij Bidesh India Limited (30% JV) included; reported loss of ₹2.70 lakh for Q1 FY26.
- Compliance Issues:
- No Independent Directors and no Audit Committee constituted.
- No Woman Director on Board since 22 June 2025.
- Previous Period Figures: Re-grouped/re-arranged where necessary.
4. Segment Information
- Single Segment: Mining and processing of copper ore and refined copper products.
- No further segment or geographic breakdown provided.
5. Capex, Projects, and Corporate Activity
- Capital Expenditure:
- Mention of Gujarat Copper Project (GCP) land lease deed pending execution (₹44.28 crore gross carrying value).
- Joint Ventures:
- Formation of JV companies:
- Chhattisgarh Copper Limited (subsidiary).
- Khanij Bidesh India Limited (JV for overseas mineral exploration and supply).
- Formation of JV companies:
- No specific details on new capex, impairments, write-downs, or restructuring provided in the filing.
6. Standalone vs Consolidated Financials
- Both Standalone and Consolidated financial results have been submitted and reviewed.
- Auditor’s reports issued on both sets of results.
- Consolidated results include:
- Subsidiary: Chhattisgarh Copper Limited (74% holding).
- Joint Venture: Khanij Bidesh India Limited (30% holding).
- Consolidated results reflect Group share of revenue and profit/loss from these entities.
Summary for Investment Analysis Team
| Aspect | Key Points |
|---|---|
| Auditor’s Opinion | Limited review with no material misstatements; non-compliance with Companies Act noted but no modification in opinion. |
| Financial Performance | Q1 FY26 revenue ₹516.37 cr, net profit ₹134.25 cr, EPS ₹1.39; improved YoY and QoQ margins. |
| Segment | Single business segment - copper mining and processing. |
| Corporate Activity | JV and subsidiary operational; pending land lease deed for Gujarat Copper Project. |
| Compliance Issues | No Independent Directors or Audit Committee; no Woman Director on Board; non-compliance with Companies Act. |
| Capex/Projects | No new capex details; land lease pending execution. |
| Standalone vs Consolidated | Both reported; consolidated includes subsidiary and JV results. |
Actionable Insights:
- Monitor resolution of compliance issues related to Board composition and Audit Committee.
- Track progress on Gujarat Copper Project land lease execution.
- Watch for updates on JV performance and any capital expenditure plans.
- Financial performance shows steady improvement; margins expanding QoQ and YoY.
- No exceptional or one-time items impacting results.
End of Analysis