Hindalco’s net down 67 per cent in Q1


A jump in finance costs and depreciation saw non-ferrous metals major Hindalco Industries report a 67 per cent drop in net profit for the quarter ended June 2015. The Aditya Birla Group flagship’s revenue from operations were up 7 per cent at Rs.8,575 crore mainly on the back of higher volume despite lower commodity prices, the company said in a statement. Operating profit for the period rose 11 per cent to Rs.1,072 crore. However, during the period, depreciation was significantly higher at Rs.332 crore (Rs.187 crore) and finance costs were at Rs.602 crore (Rs.338 crore). These were attributable to the additional capitalisation at both the greenfield smelter complexes — Aditya Aluminium smelter and Mahan Aluminium smelter. Other income was lower at Rs.194 crore (Rs.216 crore) owing to lower yield and treasury corpus. Owing to higher volumes, aluminium business contributed Rs.3,966 crore (Rs.3,011 crore) during the period and but the segment results of aluminium business fell to Rs.254 crore from Rs.320 crore mainly because of lower realization and the provision for renewable energy obligation. In copper, a 11 per cent lower copper LME prices saw revenue decline to Rs.4,614 crore from Rs.4,990 crore although segment results were up at Rs.344 crore (Rs.317 crore) on improved operational performance and better TcRc and acid realisation.


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