Hindalco net more than doubles

Hindalco Industries, India’s largest aluminium producer, recorded Rs 663 crore net profit for the quarter ending March 31, more than double the Rs 269 crore it reported in the corresponding quarter of the previous year. The net profit includes Rs 113 crore of tax writeback.

Sales for the company in the quarter rose 43 percent to Rs 5,400 crore. "Strong operational performance and lower interest expense has resulted in more than expected bottomline," said Paresh Jain, an analyst with Angel Stock Broking.

“We produced more without investment through improved asset productivity at lower costs, sold products which fetch more money and sold it into the markets  favourable for our products,” said D Bhattacharya, managing director.

The average price of aluminum rose 57 percent to $2,199 a ton on the London Metal Exchange (LME) in the quarter, as demand for the lightweight metal rose. Hindalco, also India’s second- biggest copper producer, benefited from higher prices of this metal, too, used in appliances such as refrigerators. The average copper price on the LME more than doubled in the March quarter.