Hindalco Industries, an Aditya Birla group company, reported a 34 per cent drop in net profit at Rs 425 crore (Rs 644 crore) in the June quarter due to lower output and higher input cost. Revenue from operations was down at Rs 6,028 crore (Rs 6,031 crore).
The company recorded ‘other income’ of Rs 301 crore, which includes dividend from group companies and treasury income. Aditya Birla Minerals, an Australian subsidiary, paid Rs 45 crore as dividend and Dahej Harbour and Infrastructure, Rs 85 crore.
Total expenses were up seven per cent at Rs 5,735 crore despite lower production. Aluminium production declined six per cent to 132,000 tonnes due to operational disturbances in the aluminium smelter. The value added downstream sales rose by 16 per cent to 58,000 tonnes (50,000 tonnes).
Though aluminium prices in the London Metal Exchange (LME) were lower by 24 per cent in the quarter under review, weaker rupee and higher premium in regional markets cushioned the impact substantially, said the company in a press release.
The contribution of aluminium business to overall revenue declined marginally to Rs 2,063 crore (Rs 2,093 crore). Despite lower metal output, sales were maintained at last year’s level by mark-up on value added downstream products and higher premium. Earning before interest and tax for the quarter halved to Rs 270 crore (Rs 599 crore).
Revenue from the copper business was higher at Rs 3,972 crore (Rs 3,940 crore). EBIT was lower at Rs 73 crore. The profit before interest, tax, depreciation and amortisation dipped 27 per cent to Rs 765 crore (Rs 1,045 crore).
This was mainly due to higher cost of raw materials such as coal, caustic soda and carbon products which has affected earnings by Rs 200 crore.
Shares on BSE were down one per cent at Rs 120 on Tuesday.