Financial Daily from THE HINDU group of publications
Saturday, Oct 30, 2004
Financial Daily from THE HINDU group of publications Saturday, Oct 30, 2004 |
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Corporate Results
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Aluminium Market mix shift drives Hindalco Q2 profit up 10% Our Bureau
Mumbai , Oct. 29 HINDALCO Industries Ltd ended the second quarter of 2004-05 with a 10 per cent increase in net profit at Rs 250.3 crore compared with Rs 227.7 crore in the year-ago period. Net sales moved up by 38.2 per cent to Rs 2,046 crore (Rs 1,480.9 crore). Aluminium contributed Rs 883.6 crore, higher by 27 per cent over Rs 696.2 crore in the year-ago period. Higher volumes, improved realisations, a shift in market mix in favour of higher domestic sales and value-added products drove growth. However, copper had a fall in operating margins to 8.3 per cent (17.2 per cent) because of lower realisation caused by duty reduction, higher coal rates and lower TC/RC. Spot TC/RC is on a turnaround from its lows. The company is planning to raise its alumina capacity from 1.1 million tonnes to 1.8 million tonnes. The Muri facility will see an increase from 1.10 lakh tonnes to 5 lakh tonnes and the Belgaum plant will witness a capacity increase to 6.5 lakh tonnes from 3.5 lakh tonnes. The total cost of the expansion will be $320 million-$170 million at Muri and $150 million at Belgaum. According to Mr D. Bhattacharya, Managing Director, Hindalco, domestic demand for aluminium was robust, growing by 10.6 per cent, while there was a modest recovery in copper offtake. However, there were issues such as increase in costs. Global costs increased by 36 per cent during the first-half period and this was partly due to international freight costs moving up by 74 per cent. Hindalco's exports moved up to Rs 290 crore in the first half from Rs 210 crore in the year-ago period.
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