Hindalco Industries, an Aditya Birla group company, has reported a 90 per cent fall in the December quarter net profit to ₹40 crore, from ₹350 crore in the same period last year, largely due to a sharp fall in realisation.

Despite higher production, the company’s net sales were down five per cent at ₹8,150 crore (₹8,603 crore). D Bhattacharya, Managing Director, told BusinessLine that the company continued to ramp up capacity at the new plants, despite challenging business environment globally and produced metals at the lowest cost. “We believe aluminium prices on the London Metal Exchange have bottomed out and things should be much better next quarter," he said.

The board of directors on Tuesday approved a proposal to raise ₹1,500 crore through issue of non-convertible debentures besides raising ₹2,000 crore through term loan. During the quarter, alumina production (including Utkal refinery) was up 19 per cent at 705,000 tonnes. Aluminium metal output increased 35 per cent to 296,000 tonnes as the greenfield project Mahan Aluminium completed full ramp up, while Aditya Aluminium is on the verge of reaching its optimal capacity.

Despite higher volumes, the profitability of aluminium was hit due to lower realisations and higher provision for depreciation.

The company produced 94,000 tonnes of copper cathode, while fertiliser (DAP) production was up nine per cent to 89,000 tonnes. The earnings before interest and tax in copper business was down 12 per cent at ₹348 crore due to lower copper prices on LME.

Depreciation was up 43 per cent at ₹308 crore, while finance cost rose 30 per cent to ₹582 crore.

Shares of the company was down 0.36 per cent at ₹70.

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