Hindalco sells 25K tonnes of more aluminium in Q2 2018 than in Q1: Source says

The Managing Director of Hindalco Mr. Satish Pai reported to ET Now that the company delivered good aluminium results in the second quarter of this year despite the less than impressive aluminium prices and higher input costs. The company reportedly sold nearly 25,000 tonnes of more aluminium in Q2 than in Q1. According to Mr. Pai, this was possible because of the rupee depreciation in the first place, and good and efficient operations during the monsoon period.

He particularly said, “Of course, our alumina prices are fully backward integrated and the higher alumina prices do not have a negative impact on Hindalco Aluminium. In a very tough monsoon quarter, our aluminium results were very good.”

Utkal Alumina, a 100 per cent subsidiary of Hindalco Industries, is considered a game changer for Hindalco in the quarter gone by. The cost of production of Utkal alumina is among the lowest in the world and that was certainly an advantage for Hindalco aluminium. The global alumina price gyration had no impact on the Hindalco Indian business, so to say.

While speaking to ET Now, Mr. Pai also mentioned about Aleris acquisition that it would take 9 to 15 months more to go through the regulatory process. The expected timeframe to complete the process is somewhere between April and May.

“The Aleris acquisition will give us an exposure to the aerospace which tends to be at a very high EBITDA per ton,” said Mr. Pai further.