Hindalco Industries - Aluminium Smelter Expansion Is Last In Priority: ICICI Securities

Red hot molten aluminium pours from a crucible in the foundry at the aluminium smelter.  (Photographer Andrey Rudakov/Bloomberg).

Hindalco Industries - Aluminium Smelter Expansion Is Last In Priority: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Hindalco Industries Ltd.'s management was categorical in underlining that 1/2 quarters of high London Metal Exchange doesn’t impact strategy of creating more and more de-risked downstream assets as a part of portfolio.

India capex of ~ $1.1 billion over the course of next five years of which $650 million was targeted for augmenting finishing/extrusion/aluminium flat rolled products/recycling assets in aluminium stay the course.

Smelter expansion is relegated to last in priority unless:

  1. Domestic power costs become competitive globally.

  2. Aluminium prices staying higher for longer can be ascertained.

Click on the attachment to read the full report:

ICICI Securities Hindalco Q4FY21 Results Update.pdf

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