Hindalco Q2 Net up over three-fold to Rs 439.74 cr

Aluminium maker Hindalco today reported an over three-fold jump in standalone net profit at Rs 439.74 crore for the quarter ended September 30, 2016.

The flagship firm of the Aditya Birla Group had posted a net profit of Rs 123.46 crore in the year-ago period, it said in a BSE filing.

Total standalone income of the company was almost flat at Rs 9,561.91 crore in the July-September quarter this fiscal against Rs 9,561.22 crore during the same quarter in 2015-16.

Its total expenses were lower at Rs 8,757.13 crore from Rs 9,245.48 crore during the period under review.

The company said its Board has approved raising of long term finance by way of public or private offerings through equity or equity-linked instruments of up to Rs 5,000 crore.
 

Instruments include Qualified Institutional Placement, Rights Offer, Global Depository Receipts, American Depository Receipts and Foreign Currency Convertible Bonds, it added.

Aluminium production rose 19 per cent to 321 KT (Kilo Tonnes), significant cost efficiencies achieved across the plants. Inputs costs were largely supportive though crude derivative prices hardened sequentially, it said.

Revenues for the quarter were broadly stable, as the impact of higher aluminium revenues was largely negated by a sharp decline in copper realisation, it added.

The cost of most inputs continued to remain benign, though prices of crude derivatives increased marginally with a rise in crude prices. Coal cost increased marginally due to a decline in quality during the monsoon season.

Alumina costs were also higher for standalone Hindalco as the transfer price is linked to alumina index prices, which rose sequentially. However, this price increase benefitted Utkal Alumina International Limited, the wholly owned unlisted subsidiary of the company, Hindalco said.

Following a notification issued by the Coal Ministry making applicability of contribution to the District Mineral Foundation effective retrospectively from 12th January, 2015, a one-time provision of Rs 60 crore has been made during the current quarter and is included in exceptional items.