25 NOVEMBER 2014AlCircle.com
Hindalco waits for the government to reallocate mines
Edited by : AL CIRCLE
1 min read
Hindalco Industries has shown promise in the second quarter of this financial year with a hike in the revenues by 36% when compared to last year and 7% when compared to the last quarter.
The overall report seemed fine with 66% growth YOY and 20% up from the previous quarter however the net profit in the second quarter crashed by 78% YOY and 76% quarter-on-quarter and the major cause was the coal issue. Hindalco had to pay a one time provision of INR 563 plus INR 295 per tonne for the coal extracted out of the Talabira-I mine between 2003-04 and September 2014.
This obviously depleted a large chunk of the profit at a time when the company was actually planning an expansion. It had hoped to boost the primary aluminium production from 560 KT to 1,278 KT by the end of 2014-15.
Novelis, the American downstream-cum-recycling wing of the company, however continued to do well.
However, with the government mine re-allocation program set in place and moving fast, the future of Hindalco is looking much brighter.
The overall report seemed fine with 66% growth YOY and 20% up from the previous quarter however the net profit in the second quarter crashed by 78% YOY and 76% quarter-on-quarter and the major cause was the coal issue. Hindalco had to pay a one time provision of INR 563 plus INR 295 per tonne for the coal extracted out of the Talabira-I mine between 2003-04 and September 2014.
This obviously depleted a large chunk of the profit at a time when the company was actually planning an expansion. It had hoped to boost the primary aluminium production from 560 KT to 1,278 KT by the end of 2014-15.
Novelis, the American downstream-cum-recycling wing of the company, however continued to do well.
However, with the government mine re-allocation program set in place and moving fast, the future of Hindalco is looking much brighter.
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