Hindalco reports 52% decline in Q2 net profit
Our Bureau MUMBAI HINDALCO Industries on Saturday reported a 52% drop in its standalone net profit for the quarter ended September, due to a sharp drop in metal prices on the London Metal Exchange. The Aditya Birla group flagship company said its net profit in the July-September period fell to Rs 344 crore from Rs 720 crore last year, while sales in the same period was down 13.4% to Rs 4,917 crore. The company, which has interests in aluminium and copper, fixes product prices based on the LME trends. “Aluminium price (during the period) fell from Rs 139,000 per tonne to Rs 89,000,” managing director Debu Bhattacharya told ET after announcing the earnings. “The impact from this and also from the erosion in by-product prices, contributed to the fall in the net profit.” Hindalco saw a negative impact of Rs 560 crore on its operating profit, from the fall in aluminium prices, while the copper by-product price fall resulted in a loss of Rs 340 crore. The combined negative impact on the operating profit, from the two factors is Rs 900 crore. Separately, the Hindalco board said it has approved a proposal to raise Rs 2,900 crore through either qualified institutional placement or through GDRs or any other other security, that will used to retire debt. Referring to its plans in aluminium, Hindalco said expansion at Muri and Hirakud has led to a rise in alumina production by 66% at Muri and metal production by 19 % at Hirakud. The overall metal production has gone up by 7%. On its greenfield 1.5 million tonne Alumina refinery in Orissa, Hindalco said that around 75% of the project cost has already been committed. Production of alumina is expected to start around July 2011. At the Mahan Aluminium project with a smelter capacity of 359,000 tonnes, a captive 900 MW power plant is also being built. At the Aditya Aluminium project in Orissa, around 51% of the total project cost for the smelter and power plant has been committed and major orders have been placed for both the smelter and the power plant. The refinery is scheduled to be complete by June 2013. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
