Hindalco net profit dips 13%

BS 200 SCORECARD

Hindalco Industries, the flagship company of the Aditya Birla group, reported 13 per cent decline in net profit at Rs 300.60 crore during the third quarter ended December 2005 as against Rs 347.30 crore recorded during the corresponding quarter of the last year.

Total income from operations grew 15 per cent to Rs 2,873.70 crore during the reporting quarter compared with Rs 2,490.10 crore in the last comparable quarter.

Company executives said the decline in net profit is owing to impairment of the copper business because of production losses and factors beyond the company's control.

Backed with the sustained LME prices and rising volumes, the aluminium business clocked revenues of Rs 1,564.4 crore, 16 per cent growth over the corresponding quarter.

As a result the segment profit increased by 17 per cent to Rs 542.10 crore from Rs 462.90 crore.

Copper business revenues rose 14 per cent from Rs 1,145.40 crore to Rs 1,308.40 crore on the back of rising LME prices.

The company's rights issue has received an overwhelming response from investors with around 1,96,600 applications for 284.85 million shares, mobilising Rs 682.46 crore in application money.

The allotment of shares is expected to be completed by February 15 and it is anticipated that the trading of the new shares would begin by February 18.

The company executives said the company's aluminium businesses is poised for a giant leap from domestic leadership to global scale operations in copper and it is expecting better results once the production from the new smelter stabilises.