The Odisha Mining Corporation and Hindalco Industries have agreed to a long-term supply agreement for bauxite ore for the Rayagada facility's 2 million tonnes of alumina refinery and 150 MW captive power plant. "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 stated in a regulatory filing. It was announced that this will be the second alumina refining facility owned by the firm in the Rayagada region of Odisha.
Hindalco stated that the 8000 crore rupee investment will be made in two phases. At a cost of Rs 5,500 crore, the first phase, which will handle 1 million tonnes, is anticipated to be put into operation in FY27. Hindalco Industries released its first quarter earnings for FY24 earlier in August. The company reported a profit of Rs 2454 crore, a decrease of 40.4% from Rs 4119 crore in the first quarter of FY23.
This was fueled by a turnaround in Novelis and the downstream operations of Aluminium India, and it was supported by a consistent showing from the copper sector, according to the statement. It reported operating revenue of Rs 52,991 crore, a decrease of 8.7% from Rs 58,018 crore. EBITDA for the business was Rs 6,109 crore.
The overall revenue reported by Hindalco for the quarter was Rs 53,382 crore, a decrease of 8.3% from Rs 58,229 crore during the same period last year. However, compared to Rs 52,185 crore in the first quarter of FY23, the company's total expenses in Q1FY24 were Rs 50,055, down 4.1%. "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," the company had stated.