Hindalco posts 11% growth in profits

Our Corporate Bureau

Mumbai, April 26 : HINDALCO Industries, has reported a 11 per cent increase in net profit to Rs 678.1 crore for the financial year ended March 2001, as against Rs 612.4 crore last fiscal.

Sales for the year was up 12 per cent at Rs 2,275.4 crore, as against Rs 2,031.2 crore last fiscal. Operating profits recorded an increase of 12 per cent at Rs 1,053 crore over the previous years figure of Rs 940.2 crore.
Metal production stood at 2,51,492 tonne, while the installed capacity stood at 2,42,000 tonne, an increase of 9,492 tonne over the rated capacity. The output of rolled products increased by seven per cent to 62,800 metric tonne (mt) as against 58,594 mt. The company says that this is because of better capacity utilisation due to market demand and also improved product mix.Alumina production at 4,76,700 mt has increased by six per cent, as against 4,53,305 mt in the last fiscal. Production of extrusions was up 24 per cent at 18,602 mt as against 14,995 mt produced in the last fiscal.

The company has scaled down the production of redraw rods.

This is because the demand for redraw rods had been sluggish and the value-addition has been negligible, a company press release said.

The company has shutdown mining activities at some of its mines in Chhattisgarh and Jharkand during April 2001. However, Hindalco officials maintained that this will not effect the company’s production, as inventories of bauxite at Renukoot are more than adequate. The company also has the option of obtaining the bauxite from other sources.

The company has also embarked on a brownfield expansion in Renukoot.