``The increase in sales was driven by a 17 per cent increase in volume and a three per cent improvement in realisation,'' company chairman Kumarmangalam Birla told reporters after the board meeting to take into account the financial results. Grasim and Indian Rayon, two other Birla group companies, had reported lower profits last week.

The board of directors of the company has recommended a dividend of Rs 6.50 per share (65 per cent) and the total dividend payout would amount to Rs 53.24 crore for the year. It paid Rs 5.25 (52.5 per cent) dividend last year.

Other income of the company rose 13.3 per cent to Rs 145 crore due to efficient treasury operations, R K Kasliwal, joint president of the companysaid. Depreciation provision was up by a whopping 60.5 per cent to 124.5 crore (Rs 77.6 crore). Kasliwal explained that the increased provision was due to ``most of the capitalisation which has taken place this year''.

There was a 69 per cent increase in tax provision at Rs 147 crore (Rs 87 crore), he said. The earnings per share (EPS) rose 14.2 per cent to Rs 76.1 (Rs 66.6) and the cash EPS stood at Rs 92.8 (Rs 77.1).

Birla said a techno-economic feasibility study to set up a greenfield aluminium project in Orissa was expected to be submitted soon. On the overall performance of the company, he said ``optimum utilisation of capacities, improvement in operating efficiencies and higher volumes have helped us to weather the adverse market conditions''.

Commenting on the recent downtrend in aluminium prices, he said increased availability and dumping of aluminium scrap had hit the industry hard. Alluding to the price of US $ 1,370 on the London Metal Exchange (LME) as on May 3, he felt that the prices hadbottomed out and were on a path to recovery.

Pointing to the low operating cost of the company per ton which stood at US $ 842, he said the difference between the domestic price and import price was almost Rs 7,000. The composition of the company's product portfolio was expected to undergo a change by 2001 with the emphasis being on value added products like foils and rolled products.

``Hindalco is evaluating plans for a brownfield expansion at its existing site at Renukoot,'' Birla said, adding that it would involve induction of new smelting technology, augmentation of alumina refining and power generation capacity through technological upgradation.