Hindalco expects subdued near-term margins

Non-ferrous metals producer Hindalco Industries expects near-term margins to be subdued because of cost pressures and flat prices, the company's managing director, Debu Bhattacharya, told reporters on Tuesday.

Earlier the company, part of the diversified Aditya Birla Group, posted a lower-than-expected 9.6% drop in quarterly net profit as better volumes and higher other income helped offset the impact of volatile input costs.

Shares in Hindalco, valued by the market at $4.1 billion, closed up nearly 2% after the results, in a Mumbai market that fell more than 2%.