Hindalco Industries Ltd,the flagship firm of the Aditya Birla Group,on Tuesday said that its capital expenditure will fall to Rs 5,000 crore for the current fiscal from Rs 40,000 crore as many of the company’s projects near completion.
We have made significant progress on many of our projects. The spending on these projects will be tapered as many of them get ready for comissioning in the coming years, chairman Kumar Mangalam Birla said at the company’s 54th annual general meeting.
“We expect capex for 2015 to be Rs 2,000 crore and for 2016 to be around Rs 1,500 crore, Birla said.
“We are currently awaiting the stage two clearance for our Mahan Alumunium smelter in Madhya Pradesh,which has already produced its first metal and is expected to be fully productive by financial year 2015. Aditya Aluminium Smelter in Orissa is in advanced stage of implementation and is expected to tap its first metal during this calendar year, Birla added.
The company’s Utkal Alumina Refinery in Orissa has gone on stream,said Birla.
“Hirakud Flat Rolled Products Project and Mouda Foils Project have been commissioned. These projects are aimed at increasing the volume of value added products for the company which will help improve profitability, he added.
The revenue of the company,which stands at Rs 8,000 crore on Tuesday,will jump to Rs 16,000 crore,after the completion of the projects,Birla said.
The Ebitda,which stands at Rs 2,000 crore,will meanwhile jump to Rs 6,000 crore, he added.
Speaking on the company’s flagship acquisition of US alumunium giant Novelis,which it acquired in 2007 for $7 billion,Birla said that the company has already given $1.7-billion return on capital during the last three years. Novelis has commissioned its new cold mill at its Pinda Plant in Brazil.