The Hindu Business Line : Hindalco Industries Q1 net up at Rs 195 cr

Mr Kumar Mangalam Birla, Chairman, Hindalco Industries Ltd, Mr E.B. Desai, Director, and Ms Rajshree Birla, at the AGM in Mumbai on Saturday. — Shashi Ashiwal

MUMBAI: Hindalco Industries Ltd has ended the first quarter of 2004-2005 with a net profit of Rs 195.3 crore against Rs 193 crore in the year-ago period.

The company's turnover rose by 44 per cent to Rs 1,673.3 crore from Rs 1,159.8 crore.

Aluminium business accounted for 46 per cent of net sales and 87 per cent of EBIT (earnings before interest and tax). Realisations improved significantly on the back of a spurt in international commodity prices. Operating margins increased to 40.6 per cent (38.1 per cent).

Copper contributed Rs 900.8 crore to net sales. Higher output and international prices helped in an 82 per cent increase in copper sales from Rs 495.1 crore in the year-ago period.

Interest and finance charges were down at Rs 39.8 crore (Rs 45.1 crore).

According to Mr Kumar Mangalam Birla, Chairman, global economic recovery should augment the demand for aluminium. "The demand for the metal will be fuelled by two major developments — buoyancy in housing and transportation sectors and increased level of spending on consumer durables,'' Mr Birla told shareholders at the company's annual general meeting on Saturday.