Hindalco net slips on debt

Loans taken for acquiring Novelis caused a dip in the net profit of the Aditya Birla Group’s Hindalco Industries. The profit dipped 21.65 per cent to Rs 427 crore for the third quarter ended December 31, from Rs 545 crore in the corresponding quarter of the previous year.

The net profit has also fallen due to lower other income at Rs 50 crore for the third quarter, as against Rs 150 crore for the corresponding quarter of 2008-09. This was due to a lower corpus post repayment of a bridge loan taken for acquisition of Novelis, said Hindalco.

Net sales were Rs 5,315 crore for the quarter, an increase of 29 per cent from Rs 4,117 crore for the corresponding previous year’s quarter, thanks to higher metal volumes and better copper realidation. With five per cent higher aluminum metal production, a 34 per cent increase in rolled aluminium production and 22 per cent higher copper production, compared to the third quarter of 2008-09, the quarter has been amongst the best ever, claimed the company.

Capacity increases through expansion of exisiting units have resulted in higher production, as well as lower costs. However, Ebitda (earnings before interest, taxes, depreciation and amortisation) was lower by four per cent at Rs 748 crore, mainly on account of lower by-product credit in the copper business of Rs 100 crore and higher coal cost of Rs 50 crore, said a press release.