Hindalco reports 21 per cent rise in Q1 net

13 Aug 2011

Aditya Birla group company Hindalco Industries Ltd has reported a 21-per cent growth in net profit for the first quarter of the current fiscal, on the back of higher prices for copper and aluminium on the London Metal Exchange (LME).

According to the company, the adverse impact of strong inflationary pressures largely in energy products and rupee appreciation were mitigated by improved operating efficiencies in both its copper and aluminium businesses.

The company's net sales, at Rs6,031 crore, for the quarter ended 30 June 2011, were up by 16 per cent despite flat volumes.

EBITDA (earnings before interest, taxes, depreciation and amoritsation) topped Rs1,000 crore despite steep input cost escalations, said the company. Better realisation, higher other income and improved operating efficiencies fuelled the rise.

Profit before tax rose, at Rs803 crore, rose by 19 per cent, while net profit after tax stood at Rs644 crore.

The company's copper business saw revenues of Rs.3,940 crore, a rise of 19 per cent, mainly on account of higher copper LME and by-product realisation. Despite the spike in energy costs, EBIT at Rs145 crore was 17 per cent higher over the corresponding quarter of the previous year.