Hindalco posts decline of 67 percent in net profit

Hindalco Industries Ltd on Friday posted a decline of 67 percent in its net profit at Rs.107 crore for the quarter ended June 30, 2015 as against Rs.328 crore in the year-ago period.

The Aditya Birla Group's flagship company, however, posted an increase of seven percent in its revenue from operations at Rs.8,575 crore as against Rs.7,996 in the April-June period last year.

The company, in a statement, said its revenue is eight percent lower when compared to the January-March timeframe this year on account of lower metal realisation from a sharp drop in commodity prices.

Despite a growth in its aluminum business which contributed Rs.3,966 crore to its income as compared to Rs.3,011 crore in the year-ago period, profitability from the segment dipped by 21 percent on account of "lower realisation and the provision for renewable energy obligation" factor.

Its earnings from the copper business declined in the review period at Rs.4,614 crore as against Rs.4,990 crore during April-June in 2014.

The company said going forward, while its operational performance is expected to be robust due to ramp-up of new facilities, adverse metal realisation may pose a significant turbulence.