Hindalco Industries, an Aditya Birla Group company, reported 67 per cent fall in June quarter net profit at ₹107 crore (against ₹328 crore in corresponding period last year) as the depreciation and finance cost increased sharply with new projects going on stream.

Net sales were up seven per cent at ₹8,575 crore (₹7,996 crore) largely due to higher volumes.

Depreciation was up 78 per cent at ₹332 crore (₹187 crore) while finance cost increased 78 per cent to ₹602 crore (₹338 crore).

Aluminium prices on the London Metal Exchange was down to $1,769 a tonne ($1,798 a tonne) while the premium crashed to $198 a tonne from $374 a tonne due to oversupply in the market.

Speaking to media, D Bhattacharya, Managing Director, Hindalco Industries, said the yuan depreciation would make importing from China more cheaper and put further pressure on aluminium prices on the LME.

This apart, China will be increasing its aluminium output near the coal belt, adding furthersupply to the market, he said.

Ramp up capacity Bhattacharya said the company would continue to ramp up capacity at new plants and focus on value added products such as extrusions, rolled products, foils and alloy wheels to hedge against the weak LME prices.

The company plans to put up a billet and flat rolled product facility near its plant at Hirakud in Odisha.

In copper business, revenue was down at ₹4,614 crore (₹4,990 crore) due to 11 per drop on LME prices.

However, profit was up at ₹344 crore (₹317 crore) on the back of better operational performance and higher treatment and refining charges (TcRc) besides better realisation from acid business.

The company has a debt of ₹23,000 crore, including ₹6,000 crore raised through bond, and another ₹5,000 crore in short-term debt.

The debt on Utkal Alumina is ₹5,000 crore while the company's subsidiary has $5-billion loan outstanding.

Shares of the company were up 3 per cent at ₹93 on the BSE on Friday.

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