Grasim, Hindalco net profit rises

In the second quarter, Hindalco8217;s net profit was up by 9 per cent to Rs 161 crore on sales turnover of Rs 516 crore which was 16 per cent higher over the second quarter in the previous year. Grasim8217;s performance include results of erstwhile cement business of Indian Rayon which has been transferred to Birla flagship company.

Work at Grasim8217;s pulp and fibre plants at Mavoor in Kerala continues to remain suspended. The Kerala State government has rejected applications made by the company to close the plants. Saying that the outlook is positive, company officials said it expects to improve margins through continuing cost control and higher volumes in its key product segments.

On the other hand, Hindalco officials said the outlook of aluminium sector for the next two quarters was positive following signs of upswing in the core sector such as transportation, construction, packaging, consumer durable and the electrical industry. Further, there was an appreciation of 26 per cent in prices in the last six months.

Hindalco itself hiked its aluminium prices by Rs 4,000 per tonne to Rs 77,000 in October and the prices may go up further in the next quarter. To consolidate its domestic market leadership with a market share of 42 per cent, the company is actively exploring the possibility of a brown-field expansion at Renukoot. A techno-economic feasibility study is under way and the company is expected to announce its decision within the next two months.