The Hindu Business Line : Hindalco Q3 net dips 15% on lower domestic prices

Mumbai, Jan 30 Hindalco Industries, the flagship company of the Aditya Birla Group, reported a nearly 15 per cent dip in its net profit for the third quarter of the current fiscal to touch Rs 542.7 crore, as against Rs 643.9 crore in the year-ago period.

Lower domestic aluminium prices, soaring crude costs and rupee appreciation were the major factors that pulled down the company’s profits.

During the quarter, its net sales and operating revenue stood at Rs 4,531.7 crore (Rs 4656.20 crore).

The company said while domestic aluminium prices were down by 20 per cent due to rupee appreciation, aluminium LME was lower by 10 per cent. These and other factors such as fall in global alumina realisation and soaring international crude prices adversely impacted the company’s performance during the quarter.

The company’s copper business, which generated revenues of Rs 2,808.2 crore, faced the constraints of 41 per cent lower treatment and refining charges (TcRc) and duty differential on imports. Hindalco could partially offset these factors by improving the market mix with higher sales in the domestic market, lowering power usage and better realisation from by-product sales.

“Moreover, steep appreciation of the rupee against the dollar adversely impacted segment results of copper by an estimated Rs 54 crore for the quarter as a result of restatement of net foreign currency exposures as on December 31 2007. For the corresponding quarter of the previous year, this had an estimated favourable impact of Rs 86 crore,” the company claimed.

Aluminium business generated revenues of Rs 1,729 crore, with aluminium metal sales volume rising by 12 per cent during the quarter.

The company’s expansion projects are, however, on schedule. The expansion of its Muri Alumina refinery from 1.10 lakh tonnes to 4.5 lakh tonnes is under commissioning in a phased manner. Phase II of the expansion of the smelting capacity at Hirakud from one lakh TPA to 1.43 lakh TPA is on track, the company said.

Aditya Aluminium, the integrated aluminium project with a capacity of 1-1.5 million TPA alumina refinery, 260,000-325,000 TPA aluminium smelter and 750 MW captive power plant is progressing as planned. The smelter is expected to be commissioned by March, 2011 and the refinery by May, 2011, according to the company.

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