Hindalco Industries, an Aditya Birla Group company, has reported that its net profit in the September quarter was down marginally at ₹2,196 crore against ₹2,205 crore on back of lower realisation.

Revenue was down at ₹54,169 crore (₹56,176 crore) due to lower realisation at Novelis. Overall EBITDA was up at ₹6,096 crore (₹5,743 crore) on the back of lower cost.

Hindalco has signed an MoU with Odisha Mining Corporation for sourcing bauxite ore for its planned 2-million tonne greenfield alumina refinery and 150-MW captive power plant at an investment of ₹8,000 crore at Rayagada in Odisha.

lower costs

Satish Pai, Managing Director, Hindalco Industries, said despite the lower LME aluminium prices, the company has managed to post good EBITDA growth on the back of lower coal and other input cost.

Though coal prices are expected to go up in December quarter, the overall cost will be flat quarter-on-quarter due to lower cost of other inputs, he added.

Flagging of concerns over a sudden spike in Chinese aluminium foil imports, he said China is dumping foil products and this remains a major concern not only for the company but also the country as the foil is used in food and pharma sector.

The company’s copper recycling plant of 50,000 tonnes is expected to be completed by FY26. The company has also placed order for machines to covert Cold Rolled coil into battery foil.

Novelis Inc’s application seeking governemnt support for its environment friendly aluminium rolling and recycling centre for automotive in North America has been accepted and the quantum of aid for the government will be known early next year, he said.

On venture into critical material business, Pai said the government has approached the company for gallium, which is found in bauxite residues and the company is working on a project to extract more gallium.

“We already produce large quantity of vanadium from bauxite residue. We are going to put up a e-waste recycling,” he said.

Pai expects Novelis’ performance in the third quarter to fall below September quarter due to maintenance shutdown.