Hindalco net profit jumps 26 per cent

Hindalco Industries, an Aditya Birla Group company, today said its second-quarter net profit rose 26 per cent to Rs 433.81 crore from Rs 344.05 crore in the year-ago period. Revenues during the three months to September were up by 19 per cent at Rs 5,860 crore. The company attributed the rise in revenues to ‘sharp’ increase in sales.

“The company benefitted from higher aluminium London Metal Exchange (LME) and better by-product realisation in its copper business,” Hindalco said. Despite lower metal volumes due to power outage at its Hirakud smelter, Hindalco said it was able to post handsome growth because of better product and geographic mix, and improved realisation.

“The results for the quarter could have been better but for the cost escalations and plummeting copper TcRc (Treatment charges Refining charges). Additionally, the disruption of production at the Hirakud smelter and voluntary retirement scheme pay-out at Kalwa Foil Plant (Rs 22 crore) have a bearing on the profit before interest, tax, depreciation and amortisation,” the company said.

Revenues from the aluminium business rose 19 per cent to Rs 1,911 crore, compared to Rs 1,649 crore a year earlier. Hindalco maintained that copper consumption had recovered across the world.