Development News Edition
Give Feedback

BIZ-LD-RESULTS-HINDALCO


PTI Last Updated at 10 Aug 2018, 21:08 IST India

Lower finance cost boosts Hindalco, net more than doubles

(Eds: Adding more details with management commentary)

Mumbai, Aug 10 (PTI) Aditya Birla Group flagship

Hindalco, which today reported an over 100 per cent spike in

June quarter net at Rs 734 crore boosted by lower finance cost

and stable operations, is planning an Rs 3,500-crore capex

over the next tw0 years, a top company official said.

Rising metal prices has boosted its domestic revenue

to Rs 10,670 crore for the quarter under review, despite an

increase in the input costs, mainly of coal and furnace oil.

The city-based company has drawn up a capital

expenditure plan of Rs 3,500 crore over the next two years, of

which Rs 1,500 crore will be spend this fiscal year towards

doubling its downstream capacity.

"Our net profit has jumped 102 per cent at Rs 734

crore in the June quarter compared to Rs 364 crore in Q1 of

FY18. The numbers were driven by lower finance cost, stable

operations and higher by-products realisation in the copper

business," managing director Satish Pai told reporters here

this evening.

Encouraging show was despite increase in the input

costs, mainly of coal and furnace oil, he said, adding

interest expense was lower by 23 per cent at Rs 464 crore,

mainly on account of re-pricing of long term project loans and

re-payments made last year.

"We have drawn up a capital expenditure plan of Rs

3,500 crore over the next two years. Rs 1,500 crore will be

spend this fiscal to double our downstream capacity," Pai

said, adding the new copper continuous cast rod plant ramp up

is on schedule.

Besides, Utkal Alumina's brownfield capacity expansion

of 500 kilo tonne is also on schedule and is expected to be

completed by FY21, he added.

Pai pointed out that the Hindalco hopes to generate Rs

3,000 crore cash in FY19 and will repay Rs 1,500 crore of

loans in the September quarter. The company's gross debt stood

at Rs 23,311 crore and net debt at Rs 17,297 crore in June.

Pai said domestic aluminium demand is growing at 10

per cent per annum, and he sees the demand coming in from the

construction sector mainly low cost housing projects, auto,

packaging and electrical sectors.

Commenting on pricing, he said, aluminium prices are

ruling high and may remain high due to the trade wars between

the US and China, which is worrisome. However, the industry

may not see global recession due to the trade war, he added.

On USD2.58 billion acquisition of Aleris Corp by

Novelis, Pai said, the deal is expected to be completed by

next June-July.

The Hindalco counter closed 2.2 per cent down at Rs

222.40 on the BSE against a 0.41 per cent correction in the

benchmark Sensex.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
COUNTRY :
India

add banner

LEAVE COMMENT

Download our Android App on Google Play