ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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KIRLOSKAR BROTHERS-Focus on Core Area

HINDALCO Self-Sufficiency in Power THE merger of Renusagar Power Co with Hindalco from April 1992 is expected to result in a larger company with stronger reserves and assets and the financial results of the latter for 1992-93 include those of the former. An Aditya Birla group company and a giant in the aluminium industry, Hindalco improved over its performance in 1992-93. The company's net sales rose by 15.4 per cent to Rs 755 crore while operating profit rose by 35.5 per cent. Gross and net profits rose by 34.3 per cent and 31.2 per cent respectively. The company also raised the dividend rate from 37.5 per cent to 40 per cent. While production of calcined alumina rose from 2,93,079 mt to 3,05,300 mt, production of metal fell from 1,66,197 mt to 1,63,485 mt due to reduced availability of power as a result of poor quality of coal supplied and shutdown of unit 4 at the Renusagar power plant following breakage of the turbine rotor blade. Production of rolled products fell from 31,529 mt to 29,619 mt while that of extrusions fell from 10,385 mt to 9,799 mt due to fall in demand in the consuming sectors, namely, transport, automobile and building construction. Inadequacy of funds with the State Electricity Boards led to poor offtake of EC grade metal. The high burden of excise duty on aluminium has also contributed to the demand recession for the metal. Despite very low prices on the London Metal Exchange, the company's exports on the other hand rose by more than 200 per cent to a record 20,433 mt of primary aluminiun and semi-fabricated products as against only 7,281 mt last year.

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