Hindalco net up 11% on higher metal prices

Hindalco Industries’ first-quarter net profit rose 11 per cent to Rs 534 crore, over the corresponding period last year, helped by higher metal prices.

Driven by higher volumes, better product/geographic mix and improved realisation, net sales advanced 33 per cent to Rs 5,178 crore. Out of this, the aluminium business contributed Rs 1,867 crore, while the copper business contributed Rs 3,314 crore.

“Rise in the net sales is largely buoyed by higher LME (London Metal Exchange) prices,” said D Bhattacharya, managing director of the country’s largest aluminium producer. LME is the global benchmark for base metal prices.

“The outlook for coming quarters would be impacted by a subdued financial market sentiment, uncertain commodity and financial markets and lower production at Hirakud,” said the company in a statement.

 

The company, also the country’s second-largest copper producer, has Rs 12,000-crore debt on its books and its debt-equity ratio stands at 0.5.

The company said Utkal Alumina, a subsidiary, had tied up Rs 4,906-crore debt from a group of 28 banks for its refinery project in Orissa.

After the financial closures of Utkal Alumina Refinery, it is the turn of Mahan Aluminium, as both projects are linked and are scheduled to be completed by September 2011. “We have started the talks with the bankers for the debt syndication of Mahan Aluminium, but the mandates have not been given yet,” said Sunirmal Talukdar, chief financial officer of the company.

The company plans to set up five projects in two phases at the cost of Rs 40,000 crore in the next three years. In the first phase, it will set up one refinery and two smelters.