Hindalco to spend $4-5 bn on upstream expansion

Hindalco Industries will spend $4 - $5 billion on capital expenditure over a period of three years to expand its upstream facilities for aluminium and copper, the company said on Monday.

These include an aluminium smelter, alumina refinery, a copper smelter and a copper recycling plant, managing director Satish Pai said on a call post the earnings.

The metal flagship company of the Aditya Birla group announced its earnings for the September quarter late on Monday, and its consolidated net profit jumped 78% on year to ₹3,909 crore helped by strong traction in its India business.



"Our India business delivered a strong operational performance in Q2 bolstered by our relentless focus on operational reliability and cost management," Pai said. "Consequently, our aluminium India upstream business reported an Ebitda per tonne of $1,349 - the highest in the last 10 quarters and the best-in-industry globally," he said.

Revenue from the upstream aluminium business rose 16% on year to ₹9,125 crore, while the Ebitda surged 79% on year to ₹3,709 crore aided by lower input costs. Operating margins for this business were 41%.


Revenue from the downstream aluminium business stood at ₹3,161 crore, up 20% as compared to the previous year. Ebitda from the company's copper business was at an all-time high of ₹819 crore, up by 27% as compared to the previous year.

The company's consolidated revenue from operations rose more than 7% on year to ₹58,203 crore, while earnings before interest, tax, depreciation and amortisation rose 49% on year to ₹9,100 crore from ₹6,096 crore earlier.