Hindalco plans to commission a 500,000mt capacity expansion at its Utkal Alumina plant by Q4, ending on March 31, 2021.
The Indian parent company of aluminum maker Novelis also expects the latter’s expansion in Brazil to support its aluminum beverage cans business and the finishing line in Guthrie, Kentucky to commission by FY 2022. Novelis has also resumed the final commissioning of its plant in Changzhou, China, Hindalco noted in its Q1 FY 2021 earnings report for the quarter ended June 30, 2020.
In the first quarter, the company reported a decline in both, its aluminum as well as copper production, citing weak demand and low prices because of the COVID-19 related lockdown across India. Sales also suffered due to this reason.
|Q1 FY 2021||Q1 FY 2020||% change|
|Total output (mt)||291,000||326,000||-11%|
|Value Added Products output (mt)||35,000||77,000||-57%|
|Sales volumes (mt)||303,000||320,000||-5%|
|Revenue (Rs bn)||44.36||54.90||-19%|
|Cathode production (mt)||41,000||76,000||-46%|
|Cathode rods production (mt)||26,000||66,000||-60%|
|Sales volumes (mt)||58,000||82,000||-29%|
|Revenue (Rs bn)||30.31||45.93||-34%|
The company’s consolidated revenue fell to Rs252.83bn ($3.38bn) in Q1 FY 2021 from Rs299.72bn during the same period last fiscal. Its consolidated EBITDA also dropped to Rs28.13bn from Rs37.30bn during the same period under comparison.