Hindalco net rises 32% sequentially to Rs327 crore despite revenue fall

Aditya Birla Group flagship Hindalco today reported a net profit of Rs327 crore for the April-June quarter of the current financial year (2014-15), a 32 per cent sequential increase from Rs248 crore in the fourth quarter (January-March 2014) of the previous financial year and a 31 per cent fall year-on-year compared to the profit of Rs474 in the year-ago quarter.

Revenue from operations for the quarter grew 37 per cent to Rs7,996 from Rs5,838 in the previous year quarter, but was lower compared to the revenue of Rs8,435 in the preceding quarter.

The 5 per cent sequential fall in revenue from operations has been attributed to marginally lower volume in aluminium business.

Hindalco, however, saw higher volume and higher realisation in aluminium business in Q1FY15 compared to Q1FY14. The company said the ramping up of production at the Mahan smelter improve aluminium volumes.

Copper volume, however, was low in the corresponding quarter last year due to the shutdown at the company's Dahej smelter.

Profit before interest, taxes, depreciation and amortisation (PBITDA) during the quarter stood at Rs965 crore, compared with Rs907 crore in Q1FY14. The growth in PBITDA was largely on account of higher volumes and realisation, Hindalco said.

Other income was lower compared to Q1FY14 as previous year income included certain one-timers and dividends from subsidiaries, the company said.

Finance costs rose due to interest on project loan being charged to revenue, on progressive capitalisation of greenfield projects.

Depreciation level has been static despite higher capitalisation, mainly on account of revision of useful life of certain assets in compliance with the provisions of the Companies Act, 2013. Consequently, depreciation for the quarter was lower by Rs145 crore.

Of the total revenue of Rs7,996 crore, aluminium business contributed Rs3,011 crore against Rs2,211 crore in Q1FY14. The higher revenue is attributable to 37 per cent increase in volume and higher metal premium over LME.

In the copper business, revenue moved up to Rs4,990 crore from Rs3,636 crore in Q1FY14. The performance of the copper business reflected enhanced volume post the smelter shutdown in Q1FY14.

Hindalco said its alumina production (excluding Utkal refinery) was lower at 290 kilo tonnes in Q1FY15 against 348 Kt in Q1FY14 and 318 Kt in Q4FY14.

Production was adversely impacted due to constraints in bauxite availability. The smelting operations at Aditya Aluminium, Odisha were affected following a prolonged power outage in early July due to external grid failure and water logging due to torrential rains.

Similarly, in early August, torrential rains affected smelting operation at Hirakud, Odisha. Efforts are on to restore normalcy at the both the locations.

However, metal production was higher at 190 Kt against 139 Kt in Q1FY14 and 175 Kt in Q4FY14, consequent to the ongoing ramp-up at Mahan smelter.

Utkal Alumina refinery produced 199 Kt alumina in Q1FY15. The standalone results do not include performance of Utkal Alumina refinery, as it is a separate subsidiary.

Copper cathode production was higher at 96 Kt against 68 Kt in Q1FY14, on account of the planned shutdown in Q1FY14 and maintained at the same level as in Q4FY14.

Hindalco said it would continue to strive for improving stakeholder value.