The Hindu Business Line : Hindalco Q4 net up 49% on tax write-back

Mumbai, April 30 Aditya Birla Group company Hindalco Industries Ltd has reported a 49 per cent jump in its fourth quarter net profit, chiefly on account of a write-back relating to tax adjustment for earlier years.

Net profit for the quarter amounted to Rs 1,077 crore, against Rs 721 crore in the same year-ago quarter. However, excluding a tax write back of Rs 540.7 crore, the net profit would have been lower by 28 per cent at Rs 690 crore (Rs 957 crore), impacted by foreign exchange-rate related losses.

Mr Debu Bhattacharya, Managing Director, Hindalco, said: “In the financial year 2007-08 the company lost about Rs 20,000 per tonne on account of rupee appreciation against dollar, while the total production stood around 4.77 lakh tonnes.”

Net sales in the quarter increased 5 per cent to Rs 5,010 crore (Rs 4,749 crore), while earnings before interest, depreciation, tax and amortisation was down 20 per cent at Rs 941 crore (Rs 1,173 crore).

For the financial year ended March 31, 2008, Hindalco’s net profit was up 12 per cent at Rs 2,860 crore (Rs 2,564 crore).

Excluding the tax write back (of Rs 540.7 crore), the profit was down 14 per cent at Rs 3,026 crore (Rs 3,505 crore).

The company intends to publish the audited results along with consolidated results including Novelis at a later date. “Novelis is Securities Exchange Commission, US, registrant and is restrained from sharing any information with external parties before filing with SEC in US,” the company said.

Predicting a tough time ahead, Mr Bhattacharya said: “It is going to be tough with an economic slow down in China, one of the major drivers for copper.

“Despite the slowdown, we expect major demand from China and to an extent from India.”

The company’s shares on BSE closed down 2.32 per cent at Rs 194 on Wednesday.

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