The price of aluminium and copper will continue to remain firm going forward, managing director Satish Pai said during a media call on Thursday. He said the push towards sustainability was driving demand for the two metals while there was no significant new production capacity coming up. This has resulted in demand outstripping supply.
“We are struggling to meet market needs,” Pai said.
During the March quarter, the Aditya Birla Group company’s consolidated revenue grew 38% to ₹55,764 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) rose 30% to ₹7,597 crore. Ebitda, or operating, margin, however, narrowed by 0.8 percentage point to 13.6%, primarily due to a fall in profitability at US-based subsidiary Novelis.
Its Ebitda contribution from Novelis declined by 12% to ₹3,247 crore. But the India aluminium business made up for the shortfall with 123% growth in operating profit to ₹4,050 crore. The copper business reported Ebitda of ₹387 crore.
The company has given a capital expenditure guidance of ₹3,000 crore for this fiscal year. The funds will go towards increasing downstream manufacturing capacity in India to increase revenue-share from high-margin businesses. The company will adopt learnings from Novelis to improve Hindalco’s downstream business in India, Pai said. It is aiming to expand its downstream products manufacturing capacity from around 400 kilo tonnes to 700 kilo tonnes in the coming 3-4 years.
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