Hindalco shares rally 3% on power purchase deal

Hindalco shares surged 3 percent in the morning trade on September 4 after the company announced that it has signed a power purchase deal with Seven Renewable Power.

As of 10:12am, the stock was trading at Rs 488.15 on the National Stock Exchange, up 3.14 percent.

Hindalco Industries Limited has signed a shareholder’s agreement and power purchase deal with Seven Renewable Power to acquire a 26 percent stake in SRPPL at a cost of Rs 32.5 lakh. Their objective is to create and manage a captive power facility that will consistently supply 100 MW of renewable energy to its smelter based in Odisha.

The Aditya Birla Group company plans to invest Rs 2,000 crore in a copper and e-waste recycling facility in India, besides lining up Rs 2,000 crore for the Vande Bharat trains project with the Indian Railways.

Q1FY24 financial performance

The company reported a 40.4 percent decline in its consolidated net profit to Rs 2,454 crore for the first quarter ended June 2023 from Rs 4,119 crore recorded a year ago. On a sequential basis, the profit remained flat at 1.7 percent from Rs 2,411 crore earned in the January-March period.

Consolidated revenue for the company fell 8.3 percent on-year to Rs 53,382 crore, as against Rs 58,229 crore a year ago, and 5 percent from Rs 56,209 crore recorded in the previous quarter, the company said on August 8.

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