The Hindu Business Line : Indal Q2 net grows 50% at Rs 47 cr

INDIAN Aluminium Co Ltd (Indal) has registered an 8 per cent growth in sales, both in the second quarter and the first half of 2004-05. While the first half ended with sales of Rs 834 crore, the second quarter ended with sales of Rs 423 crore.

Net profit for the second quarter registered a 50 per cent growth to end at Rs 47 crore compared to the corresponding quarter of the previous financial year. Net profit for the first half jumped by 55 per cent to end at Rs 88 crore.

Indal's exports during the first six months of 2004-05 were at Rs 290 crore, marking a growth of 38 per cent. Similarly in the second quarter it went up by 40 per cent to end at Rs 150 crore.

A press statement from Indal identified five major factors behind its success. These are higher output in alumina, metal, sheet and foil leading to volume growth in sales, improved sales realisation and product-mix across the board, overall efficiency gains across most units, use of captive coal and low interest rates.

"Driven by the ongoing brownfield expansion, the Hirakud smelter registered its best ever production of 32,958 tonnes. The entire metal output was utilised for the captive consumption of the downstream sheet and extrusion division," the press release stated.

Power generation at Hirakud's captive unit was 263 mu with an average plant load factor of 89 per cent. Indal's chemicals division registered higher profitability because of the increase in selling prices both in the domestic and international markets.

The company has also stated that all its expansion projects are progressing as per schedule. These are alumina capacity expansion at Muri in Jharkhand from 110 kilo tonnes per annum to 500 kilo tonnes per annum.

The smelting capacity at Hirakud in Orissa is being expanded to 100 kilo tonnes per annum from 65 kilo tonnes per annum. Capacity of the power unit in this plant is being increased to 267.5 MW from the existing 67.5 MW.