Hindalco profit down 31%

However, net sales rose 37% to Rs 7,996 cr

Aditya Birla Group company Hindalco on Thursday announced a 37 per cent rise in revenue for the quarter ended June at Rs 7,996 crore, compared with Rs 5,838 crore in the corresponding period last year. The company’s net profit, however, fell 31 per cent to Rs 327 crore due to higher finance costs, which rose 127 per cent to Rs 338 crore.

A Bloomberg poll of analysts had estimated a profit of Rs 422.4 crore on net sales of Rs 8,005.2 crore. During the quarter, profit before interest, tax, depreciation and amortisation (Pbitda) was Rs 965 crore, against Rs 907 crore in year-ago period. The growth in Pbitda was largely on account of higher volumes and realisations. The company said during the June quarter, its aluminium volumes rose, driven by ramping up of production at the Mahan smelter. However, copper volumes were low, owing to a shutdown at the Dahej smelter.

Other income stood at Rs 216 crore, against Rs 428 crore in the year-ago period (in the year-ago period, other income included certain one-time gains and dividends from subsidiaries). Finance costs rose in the June quarter due to interest on project loans and progressive capitalisation of greenfield projects, the company said in a statement. On Thursday, the Hindalco stock closed at Rs 178.5 on the BSE, down 0.8 per cent.