Hindalco net sales up 27%, profit by 7%

Hindalco Industries has posted a net profit of Rs 708 crore for the quarter ended March 31, as against Rs 664 crore for the same period last year. Net sales jumped 27 per cent, to Rs 6,846 crore, for the given period. Its earning before interest, tax, depreciation and amortisation (Ebitda) improved by 12 per cent, at Rs 1,020 crore, from Rs 913 crore a year earlier.

The company, in a statement, said, “Better geographic and product mix, along with higher LME and better copper volume, have been the main performance drivers.” Adding: “The adverse impact of rupee appreciation, higher coal and carbon cost and lower TcRc (treatment & refining charges) was largely compensated by improved operating efficiencies and higher by-product credit in the copper business.”

The copper business contributed Rs 4,637 crore to the revenues for the fourth quarter gone by, up 38 per cent over the last quarter of 2009-10. The company said Ebit from the copper business jumped 61 per cent to Rs 206 crore when compared with the last quarter of 2009-10. There was uncertainty about higher TcRc charges because of the tightness in the global concentrate market till 2013-14.

The company blamed the increase in input costs (especially coal) and an appreciating rupee as major factors for the dismal show.

It said, “The growth levels of 2011-12 (in the aluminium business) in India are likely to match India's GDP growth of about eight-nine per cent.” Also, that the company had spent Rs 6,500 crore on ongoing expansion. The company has spent Rs 6,500 crore on its ongoing expansion plans.

"Continuous efficiency improvements and free cash flow maximisation have been the company's key focus. Spiralling input costs, especially energy prices, pose a serious challenge until new projects come on stream," the company said.