Hindalco Industries, an Aditya Birla Group company, has reported an 8 per cent rise in net profit at Rs 460 crore (Rs 427 crore) in the third quarter of this fiscal, largely due to higher aluminium prices, cost control and an improved product mix.
Net sales were up 12 per cent at Rs 5,975 crore (Rs 5,314 crore) despite lower production due to a power outage at the Hirakud smelter and cooling tower problem at Dahej. The company's output in Q3 at Hirakud was lower by 8,900 tonnes, compared with the corresponding period of the previous year.
A breakdown of the sulphuric acid plant-3 cooling tower of the Dahej copper plant in November led to the disruption of production. The repair and restoration has been completed and normal production has since resumed. The loss of cathode production is estimated at about 10,000 tonnes.
Mr Debu Bhattacharya, Managing Director, Hindalco Industries, told
On the positive side, he said the company has more than made up for the Rs 36 crore impact from the cost push, with the Rs 150 crore increase in realisation on aluminium prices on the London Metal Exchange. Raw material cost rose 25 per cent to Rs 4,219 crore (Rs 3,369 crore).
Alumina production was lower by 6 per cent at 320,310 tonnes (339,899 tonnes) in the third quarter due to the scheduled maintenance shutdown at Renukoot. Revenue from aluminium business grew 5 per cent to Rs 1,977 crore (Rs 1,884 crore).
Copper biz
Revenues in the copper business were up by 17 per cent to Rs 4,000 crore (Rs 3,432 crore) mainly on account of higher copper prices on the LME. Given that the copper business is a custom smelting operation, with offset hedging programme, profit before interest and taxes was not significantly impacted by the gain or loss on changes in LME, said Mr Bhattacharya.
Despite better efficiencies, profit before interest and taxes from the business was lower at Rs 143 crore (Rs 159 crore) due to lower volume on account of cooling tower outage, lower treatment and refining charges, higher energy costs and appreciating rupee.
Novelis Inc, the wholly-owned subsidiary of Hindalco, has refinanced its existing debt with the sale of $1.1 billion of 8.375 per cent senior notes due in 2017, $1.4 billion of 8.75 per cent senior notes due in 2020 and a new $1.5 billion secured term loan credit facility.