Hindalco has $2.5-3 bn capex plans for next 5 yrs

Aditya Birla Group's metal flagship company Hindalco has chalked out a capex allocation plan of $2.5 to $3 billion over the next five years, chairman Kumar Mangalam Birla said Monday.“Hindalco has earmarked approximately $2.5-3 billion of growth capex on a consolidated basis,” Birla said, addressing the shareholders at the company’s annual general meeting. The focus of this framework, Birla said, is on pursuing profitable growth opportunities via organic expansions, strengthening the balance sheet through deleveraging, creating a clear road map for ESG, and overall stakeholder value enhancement.In Novelis, the announced capex will be invested mainly in auto-finishing line expansions in the US and China and rolling and recycling capacity expansions in Brazil.In India, the company will implement organic growth projects entailing a capital outlay of over $1billion toward Utkal alumina expansion, various aluminium and copper downstream expansions, and speciality alumina projects. 85575399Birla said that the company has recommended a 300% dividend of ₹3 per equity share.“Hindalco reported a consolidated operating profit or EBITDA of ₹18,896 crore, an increase of 22% year-on-year. Consolidated PAT on continuing business was ₹5,182 Crore, a 38% growth, YoY,” he said. Birla said that more than 80% of Hindalco’s consolidated EBITDA was delinked from the volatility of the global metal prices, factoring in the performances of Novelis, copper and India aluminium downstream Value-Added Products (VAP).“Your company announced its Silvassa extrusion facility this year to increase the share of VAP. This plant will service the fast-growing market for extruded aluminium products in the western and southern regions of India,” Birla said, adding that in the copper business, too, the shift toward value-added products continues.During FY 21, Hindalco brought down the consolidated net bebt-to-EBITDA to 2.59 times at the end of the financial year from a peak of 3.83 times at the end of June 2020, after closing the acquisition of Aleris.“The acquisition is a key step toward the diversification of the company’s downstream portfolio into certain premium market segments, particularly aerospace. After the acquisition; this year proved to be remarkable for Novelis (+Aleris) as it delivered its best performance,” Birla said.“We continue to see a strong demand across all our business segments, plants running at capacity, and improving margins, supported by better macros and operating efficiencies,” Birla said.Hindalco’s ESG commitments for FY22 include achieving net carbon neutrality by 2050.“Net neutrality means for every tonne of carbon dioxide we put into the atmosphere, we take out one tonne from it, thereby achieving a balance,” Birla said.

from Economic Times https://ift.tt/38n0qdD