Hindalco Q1 net up 14 pc to Rs 138 cr

MUMBAI, AUG 4: Aditya Birla firm Hindalco has reported a 10 per cent jump in its net profit to Rs 138 crore for the first quarter of the ...

MUMBAI, AUG 4: Aditya Birla firm Hindalco has reported a 10 per cent jump in its net profit to Rs 138 crore for the first quarter of the current fiscal as compared to Rs 121 crore in the corresponding period last year. Sales turnover during the quarter was up 14 per cent at Rs 478 crore from Rs 418 crore while exports stood at Rs 65 crore, up from Rs 34 crore last year.

Company chairman Kumar Mangalam Birla said at the annual general meeting here on Wednesday that quot;for Hindalco, excellent performance is part of a continuing tradition. The first quarter of this fiscal is an extension of its fine performance of the last year.quot;

During the first quarter, operating profits at Rs 214 crore reflect a 16 per cent rise over Rs 184 crore recorded in the same period of last fiscal. Birla said substantive progress has been made in the installation of the company8217;s aluminium alloy wheel plant at Silvassa. Hindalco has been exploring opportunities that would enhance growth, resulting in strong earnings and createshareholder value, he added.

8220;To consolidate its domestic market leadership, Hindalco is evaluating a brownfield expansion project at its existing site at Renukoot. Such an expansion entails low capital costs. But more important is its potential for significantly raising shareholder value. We expect the evaluation of this proposal to be completed by September 1999,quot; he said.

Birla said fiscal 1999-2000 would see higher industrial growth in India which would result in greater demand for aluminium and its downstream value-added products. quot;Moreover, commodity prices in the international market are firming up and aluminium is no exception. Therefore, if anything, Hindalco8217;s sales and realisations should be even better for 1999-2000,quot; he said.

According to Birla, foils would be contributing further to higher sales. A beginning would be made in aluminium alloy wheels and the company would also be pushing sales of value-added aluminium products. quot;We will also continue to emphasise economy in cost ofproduction. The future holds promise for all of us,quot; he said.