14 AUGUST 2013The Economic Times
Hindalco's 1st quarter earning up; to review new investments
Edited by : AL CIRCLE
2 min read
Hindalco Industries today reported an 11.61 per cent growth in standalone net profit to INR 474 crore for the first quarter ended June 30, largely due to an increase in other income.
The flagship firm of the Aditya Birla group had posted a profit of INR 424.77 crore in the corresponding period of the previous fiscal year, the company said in a BSE filing.
Hindalco said it is re-evaluating the investment strategy for the Aditya alumina refinery in Odisha and the Jharkhand aluminium projects due to "delays in getting various regulatory approvals and the current uncertain economic environment."
Net sales fell 3.31 per cent to INR 5,766.69 crore, mainly due to an 8.46 per cent decline in revenue from the copper business (at INR 3,635.77 crore). The company said revenue was impacted due to lower copper production as one of its smelters went for a planned shutdown.
Revenue from the aluminium business was up 7.2 per cent at INR 2,211.14 crore.
Lower prices at the London Metal Exchange (LME) affected revenue of the aluminium business, though the depreciating rupee helped to partially negate the impact, Hindalco said.
"Q1FY14 performance was achieved despite adverse macro-economic headwinds. The average aluminium LME dropped around 7 per cent from the levels seen in Q1FY13. This sharp fall was partially cushioned by depreciating rupee," it said, adding that total aluminium output was 139 kilo tonnes (KT).
Other income rose 41.97 per cent to INR 427.94 crore. According to Hindalco, it included non-recurring income of INR 103 crore and dividend of INR 100 crore from a subsidiary.
Finance costs rose over 82 per cent to INR 148.72 crore due to higher average borrowings in the quarter.
During the quarter, first metal was tapped at the Mahan aluminium smelter in Madhya Pradesh, while the 1.5 million tonne Utkal alumina refinery went on stream. The company is in the advanced stages of completing the Aditya aluminium smelter in Odisha.
Hindalco said its current focus is on ramping up new projects that are already on stream. Depressed LME prices, in an otherwise inflationary scenario, pose a significant challenge.
Following the results, Hindalco shares fell 2.45 per cent to INR 91.45 at the close on the BSE.
The flagship firm of the Aditya Birla group had posted a profit of INR 424.77 crore in the corresponding period of the previous fiscal year, the company said in a BSE filing.
Hindalco said it is re-evaluating the investment strategy for the Aditya alumina refinery in Odisha and the Jharkhand aluminium projects due to "delays in getting various regulatory approvals and the current uncertain economic environment."
Net sales fell 3.31 per cent to INR 5,766.69 crore, mainly due to an 8.46 per cent decline in revenue from the copper business (at INR 3,635.77 crore). The company said revenue was impacted due to lower copper production as one of its smelters went for a planned shutdown.
Revenue from the aluminium business was up 7.2 per cent at INR 2,211.14 crore.
Lower prices at the London Metal Exchange (LME) affected revenue of the aluminium business, though the depreciating rupee helped to partially negate the impact, Hindalco said.
"Q1FY14 performance was achieved despite adverse macro-economic headwinds. The average aluminium LME dropped around 7 per cent from the levels seen in Q1FY13. This sharp fall was partially cushioned by depreciating rupee," it said, adding that total aluminium output was 139 kilo tonnes (KT).
Other income rose 41.97 per cent to INR 427.94 crore. According to Hindalco, it included non-recurring income of INR 103 crore and dividend of INR 100 crore from a subsidiary.
Finance costs rose over 82 per cent to INR 148.72 crore due to higher average borrowings in the quarter.
During the quarter, first metal was tapped at the Mahan aluminium smelter in Madhya Pradesh, while the 1.5 million tonne Utkal alumina refinery went on stream. The company is in the advanced stages of completing the Aditya aluminium smelter in Odisha.
Hindalco said its current focus is on ramping up new projects that are already on stream. Depressed LME prices, in an otherwise inflationary scenario, pose a significant challenge.
Following the results, Hindalco shares fell 2.45 per cent to INR 91.45 at the close on the BSE.
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