16 AUGUST 2011livemint
Global uncertainty casts a cloud over Hindalco aluminium business
Edited by : AL CIRCLE
1 min read
In the June quarter, Hindalco Industries Ltd’s stand-alone results benefited from rising aluminium prices, and better treatment and refining charges for copper; but negative factors were a strong rupee versus the dollar, and the higher prices of coal and fuel.
Revenue rose 16.5% year-on-year to Rs. 6,031 crore, but operating profit margin narrowed by 170 basis points to 14.4%. One basis point is one-hundredth of a percentage point. On a sequential basis, however, margins improved by nearly a percentage point. Aluminium production during the quarter was flat due to the inadequate supply of bauxite. The output of value-added products, too, was affected due to sluggish demand and a lock-out at one of its units.
But the domestic aluminium business may get singed by the unfolding financial and economic situation in the Western world.At a time when costs are rising and the rupee remains strong, a reversal of the uptrend in aluminium prices—especially if it’s sustained—is not good news for Hindalco.
Revenue rose 16.5% year-on-year to Rs. 6,031 crore, but operating profit margin narrowed by 170 basis points to 14.4%. One basis point is one-hundredth of a percentage point. On a sequential basis, however, margins improved by nearly a percentage point. Aluminium production during the quarter was flat due to the inadequate supply of bauxite. The output of value-added products, too, was affected due to sluggish demand and a lock-out at one of its units.
But the domestic aluminium business may get singed by the unfolding financial and economic situation in the Western world.At a time when costs are rising and the rupee remains strong, a reversal of the uptrend in aluminium prices—especially if it’s sustained—is not good news for Hindalco.
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