By Bizodisha Bureau, Bhubaneswar, October 5, 2023: Hindalco Industries on Thursday announced that it will enter into a pact with the Odisha Mining Corporation for long-term supply of bauxite ore for its proposed 2-million tonnes alumina refinery and 150-MW captive power plant at Kansariguda, Rayagada district in the state.

“Hindalco Industries Limited will be entering into a Memorandum of Understanding (MoU) with Odisha Mining Corporation for the long-term supply of Bauxite ore for its proposed 2-million tonne alumina refinery and 150-MW captive power plant at Kansariguda in the Rayagada District,” the company said in a regulatory filing.

This will be the company’s second alumina refining facility in the Rayagada district of Odisha, it said.

The total proposed investment of Rs 8000 crore will be in two phases. The first phase of 1 million tonne is expected to be commissioned in FY27, at an investment of Rs 5,500 crore, the Company said.

Hindalco Industries in August posted its first quarter results for FY24 wherein it recorded profit at Rs 2454 crore, down 40.4 per cent as compared to Rs 4119 crore during the first quarter of FY23. This was driven by recovery in Novelis and Aluminium India Downstream Business, and backed by a steady performance by the Copper business, it had said.

It posted revenue from operations at Rs 52,991 crore, down 8.7 per cent as against Rs 58,018 crore. The company EBITDA stood at Rs 6,109 crore.

Hindalco recorded total income for the quarter at Rs 53,382 crore, down 8.3 per cent from Rs 58,229 crore during the year ago period. However, the company’s total expenses during Q1FY24 stood at Rs 50,055, down 4.1 per cent as against Rs 52,185 crore during the first quarter of FY23.

“Despite macroeconomic headwinds, Hindalco maintained a strong balance sheet and liquidity position which helped the company keep the net debt to EBITDA ratio below 2x,” it had said.

Hindalco is one of the country’s leading aluminium manufacturing companies.