The Hindu Business Line : Hindalco net rises 92% on higher prices

Advertisement

Mumbai Jan. 25 Hindalco Industries' net profit for the third quarter of the current fiscal rose 92 per cent on the back of strong aluminium prices and higher treatment-charges-refining-charges (TcRc) margins from its copper business.

Net profit amounted to Rs 643.9 crore, up from Rs 336 crore in the corresponding year-ago period. Net sales rose 62 per cent, to Rs 4,656 crore from Rs 2,873 crore.

Strong aluminium prices on the London Metal Exchange and higher sales of value added products led to aluminium revenue rising 15 per cent, to Rs 1,795 crore. Profit before interest and tax from this segment rose 39 per cent, to Rs 755.5 crore (Rs 542 crore), as value added production 67 per cent of primary metal production, from 59 per cent.

Copper biz up

Copper business revenue rose 119 per cent, to Rs 2,862 crore, while PBIT amounted to Rs 159.5 crore because of relatively higher TcRc margins (against a loss before interest and tax of Rs 84.5 crore a year ago). Hindalco's total expenditure for the quarter rose 57 per cent, to Rs 3,611 crore.

EBITDA, at Rs 1,104 crore, recorded a 76 per cent increase.

Provision for taxes, at Rs 251.6 crore, was 154 per cent higher.

Copper prices continued to come down to more realistic levels with Chinese demand decreasing considerably.

The company's shares gained by 3.79 per cent on the BSE, to close at Rs 175.25.