Financial Services  

Hindalco Q4 stand alone net profit down 9.65%

Co alloted 15 crore warrants worth Rs 2,165 crore to its promoters on March 22
 Hindalco Ind Q4 net profit  down 9.65 to Rs 639.99cr

Hindalco Industries Wednesday said it has reported 9.65% fall in its standalone net profit at Rs 639.99 crore for the fourth quarter ended March 31, largely due to increased tax out-go, the news reports said.

In the same quarter of 2010-11, the leading aluminium and copper producer had posted a net profit of Rs 708.37 crore. Net sales of the company also rose 11.87% to Rs 756.33 crore during the period under review.

Aditya Birla Group’s tax outgo rose by over 76% to Rs 139.45 crore and its total expenditure increased 13.45% to Rs 6,948.07 crore. The company’s standalone net profit for the full year 2011-12 rose 4.69% at Rs 2,237.20 crore.

Net sales of the company went up 11.54% at Rs 26,353.06 crore in the financial year 2012, on account of realisations and higher volume. 

Hindalco also said, “Net profit for the quarter is marginally lower than that of the corresponding quarter in the previous year due to lower provisioning for taxation in Q4 of FY’11 on account of lower effective tax and tax write-back.”

From the total quarterly revenues, the aluminium business contributed Rs 2,499 crore and revenues from the copper business was Rs 5,154 crore.

Meanwhile, the company alloted 15 crore warrants worth Rs 2,165 crore to its promoters on March 22. Of this, the company has also secured an amount equal to 25% of the price of each warrant.

On April 25, the flagship company of the Aditya Birla Group also raised Rs 3,000 crore through issuing debentures on April 25. Also, the company’s aluminium production also increased 4% to 144 kilo tonne (KT) in the quarter under review, while for the fiscal it reported a growth of 6.69% to 574 kt.

During the quarter, the copper production increased by 11% to 95 kt. The fiscal was down marginally to 330 kt on account of the planned shutdown of the plant. 

The company also discussed the outlook and said, “The volatile commodity prices and spiralling energy costs pose a significant challenge for the company. The company is confident to lessen the cost pressure to a larger extent on the strengths of integration in operation and operational efficiencies.”

Hindalco Industries Ltd is the world’s largest aluminium manufacturing companies and is a subsidiary of Aditya Birla Group. The company has annual sales of US$5 billion and employs 13,675 people and is listed on Forbes 2000.

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