Higher material and fuel cost has hit the quarterly earnings of Hindalco Industries Ltd. The company has reported 28 per cent decline in the net profits for the second quarter at Rs 358 crore. In the year-ago quarter, it had clocked Rs 502 crore profits.
Net sales for the quarter also dipped to Rs 6,114 crore (Rs 6,271 crore).
Of the total revenue of Rs 6,163 crore, aluminium business contributed Rs 2,105 crore, while in the first quarter of FY13 it was Rs 2,063 crore. Sales were higher due to the increased volume of value-added downstream products.
In the aluminium segment, results were impacted by operational disturbances in both the smelters of the company. The total metal production stood at 128 Kt (kilo tonne) for the quarter compared with 132 Kt in Q1FY13, although sales of downstream products rose to 62 Kt from 58 Kt in Q1FY13.
Continuing cost pressures, particularly in case of coal and caustic soda, also strained results, the statement added.
In the copper business, revenue for the quarter was up at Rs 4,066 crore against Rs 3,972 crore in Q1FY13, bolstered by better operational performance, increased volume, improved by-product realisation and a weaker rupee.
The statement added that a common loan agreement of Rs 9,896 crore was signed by the company on September 17, for its Aditya Aluminium project, with a group of 28 banks and financial institutions. With this facility, the financial closure of Aditya Aluminium project has been achieved.
On the BSE, the stock closed at Rs 112.55, a dip of 1.87 per cent over the previous closing price.