Hindalco's value addition perks profitability

MUMBAI, JAN. 23. Hindalco Industries, the Aditya Birla group's flagship, has achieved a 15 per cent rise in its net profit to Rs. 521.2 crores in the nine months ended December 31, 2000 from Rs. 451.9 crores in the same period last year. The improved profitability has resulted from a larger share of value added products, better realisation, consolidation of operating efficiencies and successful efforts at cost saving, according to a company release.

The turnover has risen by 12 per cent to Rs. 1,677.10 crores from Rs. 1,496.30 crores with exports registering a rise of 26 per cent in value terms to Rs. 292 crores from Rs. 231 crores. This was due to better international prices. The operating profit was up 17 per cent to Rs. 792 crores from Rs. 679 crores in the corresponding nine month period in the previous year.

Aluminium metal production has risen marginally to 1.88 lakh tonnes with 100 per cent capacity utilisation. Alumina production was up six per cent at 3.53 lakh tonnes. Extrusion production rose by 29 per cent to 14,311 tonnes from 11,081 tonnes.

The company raised a debt of Rs. 150 crores for general corporate purposes through secured redeemable non-convertible debentures at an interest rate of 11.22 per cent for a seven year period.

In anticipation of the emerging demand, the company has embarked on a substantial brownfield expansion at Renukoot. Consequent to completion the smelting capacity will increase to 3.42 lakh tonnes from 2.42 lakh tonnes and alumina refining capacity to 6.60 lakh tonnes from 4.50 lakh tonnes. Power generation capacity will stand increased to 769 MW from 619 MW.

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