March 201510

News Makers

he government's proposal to set up five new 4,000 MW ultra mega Tpower projects, entailing investments of around Rs 1 lakh crore, is a big positive for the copper industry, said International Copper

Association of India (ICA).

"The railway budget had set up a roadmap for reforms and the tone for the Budget has followed more or less a similar pattern," ICA India Managing Director Sanjeev Ranjan said. The government has realised that there is a very strong case for improving the global competitiveness of India by focusing on infrastructure, ease of doing business by bringing in regulatory reforms to cut bureaucracy and improve existing taxation norms to generate jobs, he said.

Though the budget did not have anything specific for real estate, the clarity that there will be no capital gains tax on contribution to REITS, is positive, Ranjan said.

Consolidation and improvement in operations of railways by bringing in better technology will also be a big positive for the copper industry, he said. "We are happy with the government sticking to its vision of 'Housing for All' by 2022, which means it will build 60 million homes -- 40 million in rural areas and 20 million in urban areas -- by allocating Rs 22,407 crore, for taking measures in housing and urban development across the country in 2015-16. This will be a big boost for our building wires for residential application," he added.

5 mega power projects positive for

the copper industry - ICA

indalco Industries Ltd has posted Ha net profit of Rs 3593.60 mn for the quarter ended December 31,

2014 as compared to Rs 3339.80 million for the quarter ended December 31, 2013. Total Income has increased from Rs 74772.80 mn for the quarter ended December 31, 2013 to Rs 88155.10 million for the quarter ended December 31, 2014. Net sales stood at Rs8,603 crore as compared to Rs 7,273 crore in the corresponding quarter of the previous year. Profit before Interest, Depreciation and Tax (PBITDA) was Rs 1,135 crore versus Rs 834 crores in the corresponding quarter of the previous year. However, finance cost and depreciation were significantly higher compared to Q3FY14 due to progressive capitalisation of the Company's greenfield projects.

Higher sales reflect increased volume and

better realisation in both Aluminium and Copper Businesses. PBITDA for the quarter improved by 36% to Rs 1,135 crore. Of the total revenue of Rs 8,603 crore, Aluminium Business contributed Rs 3,636 crore vs. Rs 2,471 crore in Q3FY14. The higher revenue is attributable to higher volume and higher realization. As a result, the segment results of Aluminium Business went up from Rs 170 crore in Q3FY14 toRs 384 crore in Q3FY15. In the Copper Business, revenue stood at Rs 4,976 crore compared to Rs 4,817 crore in Q3FY14. The performance of the Copper Business reflected enhanced volume, better TcRc and improved by-product credit. The segment results rose from Rs 300 crore in Q3FY14 to Rs 396 crore in Q3FY15. Operational Review Aluminium Metal production was up 37% to 217 Kt vs. 158 Kt in Q3FY14,

consequent to the ongoing ramp-up at Mahan Smelter and Aditya Smelter. On a sequential basis, the metal production is u p b y 1 6 % . A l u m i n a production(including Utkal) was up by 38% to 593Kt over Q3FY14.The standalone results do not include the performance of Utkal Alumina refinery, as it is a subsidiary of the Company. Coal availability is posing a significant challenge for ongoing pot ramp-up at the upcoming Mahan and Aditya Smelters The downstream value added production was impacted by adverse market demand conditions. Copper Cathode production was higher at 95 Kt as against 89 Kt in Q3FY14 (vs. 96 Kt in Q2FY15). Value added CC rods production was at 36 Kt compared to 34 Kt in Q3FY14.

Hindalco Inds post net profit of Rs 359 cr in Q3