Hindalco Q1 net drops over 30 percent on fuel, finance costs

New Delhi, Aug 14 (IANS) Aditya Birla Group’s aluminium rolling company Hindalco Industries on Thursday reported a net profit fall of 30.9 percent at Rs.327.5 crore in first quarter ending June, caused by higher power, fuel, finance, and raw material costs.

The company’s net profit in the corresponding quarter of the last fiscal was Rs.474.1 crore. 

Its net sales grew 36 percent year-on-year to Rs.7,930 crore, compared to Rs.5,837 crore reported in the same period last fiscal.

Other income in the quarter in review was Rs.216.30 crore as against Rs.427.94 crore in the same quarter of the last fiscal.

Hidalco’s power and fuel costs increased 41 percent year-on-year to Rs.1,137 crore.

Total income from operations jumped 37 percent to Rs.7,996 crore in the quarter ended June from Rs.5,838 crore in same quarter last year on the back of higher volumes in both copper and aluminium businesses.

The company said aluminium volumes were higher driven by increasing production at its Mahan smelter project.

Operating profit or EBITDA (earnings before interest, taxes,depreciation and amortisation) during the quarter, jumped 56.5 percent year-on-year to Rs.748 crore.

Hindalco stock closed on Thursday at Rs.178.50 a share, down 1.50 points, or 0.83 percent, over its previous close on the Bombay Stock Exchange (BSE).