Hindalco Q1 net up 11% at Rs 534 cr

Hindalco Industries, an Aditya Birla Group company reported net profit of Rs 534 crore for the first quarter ended June 30, 2010 up 11 per cent from Rs 481 crore in the corresponding quarter ended in the last financial year.

Net sales at Rs 5,178 crore in Q1FY11 were up 33 per cent over the same quarter last year, driven by higher volumes, better product/geographic mix and improved realisation.

Additionally its low cost advantage, arising from integration and captive coal for their power generation for the Hirakud smelter, cushioned the adverse impact of spiralling cost escalations of crude and crude derivatives as well as purchased coal for Renukoot and plummeting Copper TcRc, said the company in its release.

Of the total revenues of Rs 5,178 crore, Aluminium Business contributed Rs 1,867 crore with an EBIT of Rs 552 crore. Aluminium sales were higher on the back of higher volume, better mix, along with better LME compared to Q1FY10. These benefits were eroded partly by the appreciating Rupee and higher energy cost.

In the Copper Business, revenues were higher at Rs.3,314 crore up by 34% from Rs.2,479 crore in Q1FY10, mainly on account of higher copper LME. The Copper Business performance is to be seen in the light of planned shutdown of a Smelter for 24 days in April’10.

Utkal Alumina International Limited [UAIL], which is a 100 per cent subsidiary of Hindalco, is setting up a 1.5 mtpa alumina refinery in Rayagada district of Orissa. The project will feed the alumina requirements of the Mahan and the Aditya smelters presently under construction.

Hindalco has successfully achieved the financial closure of UAIL with the signing of a common loan agreement of Rs 4,906 crore on July 28, 2010. This constitutes the entire debt requirement of the project. The loan documents were signed in Bhubaneswar by a group of 28 banks. The syndication is led by IDBI Bank with SBI Caps and The Royal Bank of Scotland NV as joint arrangers and book runners.