Kumar Mangalam Birla, the chairman of Hindalco, on Friday said he expects the depreciating rupee to help improve the company's performance, helped by exports.
“Our export revenue is expected to be Rs 75.16 billion for this year and this is 31 per cent of our total revenue,” said Birla at the company's annual general meeting.
He, however, raised concerned about the future course of the global economies. “This is more than evident in terms of volatile financial markets, uncertainty in growth, uneven trade, high unemployment and intractable inflation. Clearly, such pronounced volatility is highly disruptive. And India is no exception,” he said.
Birla said the promoters were looking to increase their holding in the company through open market operations. "The founders are looking at opportunities for raising stake in the company through the creeping acquisition route," he said, but gave no details.
The decision comes in the wake of the fall in share price following weak market sentiment.
Hindalco also plans to acquire coal blocks abroad. The company said it had referred clearance of the Mahan coal block in Madhya Pradesh to the empowered group of ministers (EGoM), constituted to decide on forest clearance.
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“We have already made detailed representations and are hopeful of a favourable decision by the EGoM, considering the merits of the case. In the meantime, we are making arrangements. We are talking to Coal India for alternative supply,” he said. Work on the Mahan project has been delayed by three months.
The company said its growth would depend on the expansion of alumina refining and smelting capacity. Birla said the timely commissioning of these projects was a key to future profitability.