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Hindalco Industries, an Aditya Birla group company, has reported 69 per cent fall in consolidated net profit at Rs 263 crore (Rs 854 crore) during the financial year ended March, 2016 on the back sharp fall in realisations.
Net sales were down four per cent at Rs 1 lakh crore (Rs 1.04 lakh crore). The company has announced a dividend of Rs 1 per share leading to outflow of Rs 249 crore including dividend distribution tax.
Depreciation cost during the year was up 17 per cent at Rs 4,196 crore (Rs 3,591 crore) while finance cost jumped 21 per cent to Rs 5,047 crore (Rs 4,178 crore).
The company has made a provision of Rs 682 crore on a consolidated basis and Rs 651 crore on standalone basis during the March quarter for expenses on executed project (Rs 279 crore), impairment loss of fixed asset (Rs 367 crore) and provision for diminution in carrying value of investments (Rs 35 crore). The provisions have been made from the business reconstruction reserves through a scheme approved by the Bombay High Court, said the company.
Had the scheme not approved by the Court the company’s net profit during the March quarter would have been lower by Rs 651 crore and the same on consolidated basis would have dropped by Rs 682 crore, it said.
Revenue from Novelis Inc, a wholly-owned subsidiary, declined 11 per cent to $9.9 billion despite higher shipments as average aluminium prices declined 16 per cent and local market premium fell by 58 per cent.
Novelis reported net loss of $38 million and net income of $131 million for last financial year. Utkal Alumina registered net loss of Rs 93 crore after accounting Rs 518 crore for interest outgo and Rs 289 crore for depreciation.
On a standalone basis, Hindalco's net profit dropped 34 per cent to Rs 607 crore (Rs 925 crore). Net sales were down at Rs 33,922 crore (Rs 34,094 crore).
During the March quarter standalone net profit more than doubled to Rs 356 crore (Rs 159 crore) on lower input cost. Net sales were down at Rs 8,668 crore (Rs 9,372 crore).
The company expects macro economic headwinds to persist with several challenges from uncertain global economy. Hindalco banks on operational excellence, enhanced value addition and cash conservation to tide over difficult times, it said.
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