It will invest $300M in a brownfield expansion project at its Pinda unit in Brazil.

Mr D Bhattacharya, managing director, Hindalco, said that the company had managed to sustain the growth in Novelis in the second quarter by focusing on high-margin products and stiff cost control.

“Novelis has launched specific projects, including de-bottlenecking initiatives in September, to accelerate profitable growth. It recorded $1.2bn, including cash of $512M this quarter. Shipments were up 6% at 737kt,” he said.

The company registered a 45% increase in adjusted EBITDA (Earnings Before Income Tax Deductions At Source) at $290M against $200M in the same period last year.

Net profit was, however, lower at $62M in the quarter under review against $195M due to unrealised derivative gain of $137M ($50M).