The Hindu Business Line : Hindalco net profit rises 16%, sales flat

Mumbai, July 28 Hindalco’s net profit rose 16 per cent although net sales were flat following a shutdown of a copper smelter at the company’s Dahej facility.

Net profit rose to Rs 697 crore, from Rs 599 crore in the same year-ago quarter.

Net sales amounted to Rs 4,647 crore (Rs 4,685 crore). Other income was higher at Rs 215 crore (Rs 125 crore), so was total income at Rs 4,862 crore (Rs 4,809 crore).

Profit before depreciation, interest and tax rose 16 per cent to Rs 1,163 crore (Rs 1,006 crore).

The copper business reported lower revenue at Rs 2,706 crore (Rs 2,926 crore). It suffered a negative impact of Rs 152 crore as the rupee depreciated against the US dollar. In the year-ago quarter the situation had been the opposite, the impact being favourable to the tune of Rs 14.3 crore. As a result the profit before interest and tax from this segment was lower by a third, at Rs 74 crore (Rs 112 crore).

Sales from the company’s aluminium business rose to Rs 1,943 crore, from Rs 1,760 crore, as volumes were higher and London Metal Exchange prices rose. Profit before interest and tax, at Rs 750 crore, was higher by 18 per cent.

The mark to market losses on outstanding derivative instruments as on June 30, 2008, amounted to Rs 115.19 crore, said a statement from the company.

The company’s shares dipped by 2.21 per cent on BSE closing at Rs 146.15 on Monday.

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