Hindalco posts record 3Q results, provides outlook for aluminium and copper

Hindalco Industries Limited (Business Wire India):

- Continuing growth in revenue: 62 per cent YoY
- EBIDTA soars by 76 per cent to Rs. 1103.8 Crores
- Net profit at Rs. 643.9 Crores, up 92 per cent YoY

Hindalco Industries Ltd, the flagship Company of the Aditya Birla Group, has reported a sterling performance for the Quarter ending December'06. Its net sales at Rs. 4656.2 crores is up by 62% over Q3 of FY06 at Rs 2872.7 crores. Profit before Tax at Rs.895.5 crores soared by 106 % while Profit after Tax at Rs.643.9 crores shot up by 92 % in comparison to Q3 of FY06.

On the back of strong aluminium prices on the LME, coupled with an improved product mix on account of higher sales of value added products and focus on speciality alumina, Aluminium business revenues expanded from Rs 1563.4 Crs to Rs 1795.8 Crs, a rise of 15 %. Despite strong inflationary pressures, Profit before interest and tax went up from Rs 542.1 Cr to Rs 755.5 Crs, an increase of 39%.

In the Copper business revenues escalated by 119% from Rs 1308.4 Crs to Rs 2862.2 Crs. Profit before interest and tax at Rs 159.5 Crs witnessed a swing of Rs 244.0 Crs from the loss of Rs. 84.5 Crores posted in Q3 of the previous fiscal. The performance improvement was driven by good performance from the 3rd smelter at Dahej and relatively higher TcRc margins.

Operational Review
Aluminium

Both Alumina and Aluminium continued to operate at high utilization levels and above their rated capacities. Rolled products output strengthened due to better performance from the rolling plants as also the acquisition of the rolling mill at Mouda. Extrusion output showed significant improvement due to total capacity utilization of the new Extrusions press operating at Renukoot since April '06. Value added production as a percent of total primary metal production was at 67 % vis-a-vis 59% during Q3 FY06 .

Copper

The production of Copper cathodes went up by 65% to 72,904 T, vis-a-vis Q3 of the previous year. The performance of the third smelter at Dahej was very good as it operated at rated capacity after November 2006. However, operations at Copper II have been temporarily suspended from end October'06, keeping the overall economics in view largely the un-remunerative price of copper concentrate in international market. Production of CC rods gained by 9% to 24,669 T during the same period. Sulphuric acid output surged by 46% to 1,90,493 T.

Expansion Projects
Muri

The Brown field expansion of the Alumina refinery from 110 KTPA to 450 KTPA is at an advanced state of completion. It is expected to be commissioned in the first quarter of the next fiscal.

Hirakud

The commissioning of Phase 1 of the expanded Smelting capacity from 65 KTPA to 100 KTPA at Hirakud has been completed. All of the 150 pots have been energized. Phase -2 of the project which will raise Smelting capacity to 143 KTPA, is on track and is scheduled to go on stream in the first half of the next year.

Belgaum

For the expansion of the Alumina Refining capacity at Belgaum, Karnataka from 350,000 TPA to 650,000 TPA the leases for bauxite mining are yet to be secured until then the expansion plan is kept on hold.

Utkal

Work on this 1,500 KTPA Alumina project is on track.. The Pile foundation for the precipitation area is progressing. The layout of the non-plant buildings has been finalized. Detailed engineering for Mines has commenced. The second phase of the rehabilitation settlement process is underway.

Aditya Alumina

For this greenfield integrated 1.5 million TPA Alumina, and 325 KTPA of Aluminium project, land acquisition is expected to be completed by June 07. In principle approval has been obtained for SEZ status for the smelter.

Bargawan

This project envisages setting up of a 325 KTPA Smelter and a 250 MW Captive Power Plant supported by a Captive Coal Mine. The proposed location in Bargawan is in the Sidhi District of Madhya Pradesh.