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Hindalco Q3 net rises 11 pc

MUMBAI: Hindalco Industries Ltd has ended the October-December 2000 quarter with a 11-per cent increase in net profit at Rs 170 crore as against Rs 152.7 crore in the year-ago period.

Net sales were Rs 561.1 crore compared to Rs 502.2 crore. Other income stood at Rs 39.3 crore (Rs 34.5 crore). The sales growth was driven by a higher portion of value-added products and improved international prices, the company said.

Total expenditure for the quarter amounted to Rs 302.9 crore (Rs 274.1 crore). Interest was pegged at Rs 16.3 crore (Rs 15.7 crore), depreciation at Rs 35.7 crore (Rs 34.7 crore) and provision for taxation at Rs 75.5 crore (Rs 59.5 crore).

During the nine-month period, Hindalco's net profit rose by 15 per cent to Rs 521 crore. Turnover increased by 12 per cent to Rs 1,677.1 crore. Exports moved up 26 per cent to Rs 292 crore.

The company said improved profitability had resulted from a large share of value-added products, better realisations, consolidation of operating efficiencies and efforts at cost saving.

Metal production for the nine-month period stood at 1,87,825 tonnes (1,86,577 tonnes). Alumina production was 3,53,205 tonnes (3,31,793 tonnes), rolled products 47,472 tonnes (42,557 tonnes), and extrusion 14,311 tonnes (11,081 tonnes).

The company said production of redraw rods was consciously scaled back to 31,394 tonnes due to a weak demand from the electrical sector.

Foil production rose to 9,759 tonnes (5,004 tonnes). Production at the aluminium alloy wheel plant has been stabilised and the output will be increased gradually, according to a press release.

In January 2001, the company raised a debt of Rs 150 crore for general corporate purposes through secured redeemable non-convertible debentures issued at an interest rate of 11.22 per cent for a period of seven years.

The company's brownfield expansion, involving an increase in smelting capacity to 3,42,000 tonnes from 2,42,000 tonnes, alumina refining capacity to 6,60,000 tonnes from 4,50,000 tonnes and power generation capacity to 769 MW from 619 MW, is on track.

``Work on the expansion is progressing well. Orders for major equipment including those for the power generation expansion have been placed,'' the release said.

The company said the fundamentals remained favourable with reduced availability on account of production cutbacks, low inventory levels and strong demand trends in major consuming areas other than North America.

The outlook for Hindalco during the current fiscal and the near term was ``extremely promising'', the release added. - Our Bureau