Hindalco Q2 net up 16% at Rs 503 cr

Aditya Birla Group firm Hindalco Industries today reported a growth of 15.84% in net profit to Rs 502.52 crore for the quarter ended September 30, 2011, on the back of higher realisation from its aluminium and copper businesses.

The company had reported a net profit of Rs 433.81 crore for the corresponding quarter last fiscal.

Net sales of the company rose by a little over 7% to Rs 6,272 crore during the quarter under review from Rs 5,860 crore in the July-September quarter of FY11, it said in a statement.

Revenues from the aluminium business rose by 16% to Rs 2,213 crore during the quarter from Rs 1,911 crore in the Q2FY11 due to "higher volumes and better prices on the London Metals Exchange (LME)", the statement added.

In the case of Hindalco Industries' copper business, revenues improved to Rs 4,062 crore during the second quarter of FY12 from Rs 3,951 crore in the corresponding quarter of 2010-11 on the back of higher LME prices and by-product credits, the statement said.

However, production of aluminium and copper were lower on an annual basis during the quarter due to constrained supplies of bauxite, sluggish domestic demand and an extended shutdown of one of the smelters at the Dahej plant, it added.

In addition, operations at the company's Hirakud plant were affected during the quarter due to "unprecedented rains and the flood situation in September", which disrupted coal supplies to the plant, the statement further said, adding that operations have since been normalised.

Providing an outlook for the remaining six months of the fiscal, the company said that it will be "difficult due to global uncertainties, falling LME prices and persisting cost pressures".

The company expects to commission its Hirakud smelter expansion project by early 2012, which will increase its capacity to 213 kilo tonnes per annum (KTPA) from 161 KTPA and captive power generation capacity by 100 MW, the statement said.