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Hindalco industries to save Rs 150cr from Utkal Alumina refinancing
Edited by : AL CIRCLE
2 min read
Hindalco Industries, the manufacturer of non-ferrous metals would save nearly Rs 150 crore of interest payment on annual basis following refinancing of Utkal alumina project, Managing Director, D Bhattacharya told CNBC-TV18.
The Aditya Birla group company refinanced Rs 4700 crore loan from State Bank of India and Axis Bank for its Utkal alumina project, according to The Economic Times report. At an interest rate of 10.15 percent payable over an eight-year period, this will imply a reduction of a whopping 300 basis points from the previous loan.
Utkal is a 1.5-million-tonne refinery that will feed the company's Mahan and Aditya smelters in Madhya Pradesh and Orissa, respectively. The total project cost is Rs 7,009 crore, 70 percent of which has been funded through debt.
“Now that the commissioning is happening then lenders feel much more confident about the project and that has helped us to refinance by which we can save the interest cost to the tune of about Rs 150 crore in a year,” Bhattacharya said.
The company today reported 2 percent year-on-year jump in profit to Rs 474 crore during June quarter , despite a challenging environment. The bottom-line got a boost from higher other income of Rs 428 crore. The company had reported Rs 301 crore as other income in the year-ago period.
Net sales declined over 3 percent Y-o-Y to Rs 5766 crore.
The Aditya Birla group company refinanced Rs 4700 crore loan from State Bank of India and Axis Bank for its Utkal alumina project, according to The Economic Times report. At an interest rate of 10.15 percent payable over an eight-year period, this will imply a reduction of a whopping 300 basis points from the previous loan.
Utkal is a 1.5-million-tonne refinery that will feed the company's Mahan and Aditya smelters in Madhya Pradesh and Orissa, respectively. The total project cost is Rs 7,009 crore, 70 percent of which has been funded through debt.
“Now that the commissioning is happening then lenders feel much more confident about the project and that has helped us to refinance by which we can save the interest cost to the tune of about Rs 150 crore in a year,” Bhattacharya said.
The company today reported 2 percent year-on-year jump in profit to Rs 474 crore during June quarter , despite a challenging environment. The bottom-line got a boost from higher other income of Rs 428 crore. The company had reported Rs 301 crore as other income in the year-ago period.
Net sales declined over 3 percent Y-o-Y to Rs 5766 crore.
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