Hindalco Industries Q3 net down 4% at Rs 433.52 crore
Mumbai: Hindalco Industries on Friday reported nearly 4 percent decline in standalone net profit at Rs 433.52 crore for the third quarter ended December 31, largely due to subdued sales and sharp increase in finance costs.
The flagship firm of the Aditya Birla group had reported net profit of Rs 450.69 crore in the same period last fiscal.
Net sales of the company was up 3 percent to Rs 6,789.90 crore during the quarter vis-a-vis Rs 6,590.23 crore of the October-December quarter of FY'12, Hindalco said in a filing to the BSE.
Company's revenues from aluminium business were down nearly 1 percent to Rs 2,215.45 crore, while revenues from copper business were up 5.49 percent to Rs 4,660.84 crore in the quarter.
In the third quarter of FY'12, Hindalco had reported 2,236.19 crore revenues from aluminium and Rs 4,418.15 crore revenues from copper.
Besides, its finance costs also zoomed nearly 113 percent to Rs 168.98 crore, while other income rose nearly 3.5 times to Rs 318.08 crore.
In a separate statement, Hindalco said: "Finance cost rose on account of greater average borrowings during the quarter... The company drew USD 100 million finance from Export Development Canada for its Mahan Aluminium project. This is part of the overall financial closure for the project."
It further said that other income, at Rs 318.08 crore, was "stronger given an enhanced average treasury, along with income of non-recurring nature".
During the quarter, Hindalco produced 139 Kt aluminium, 326 Kt alumina and 84 Kt copper cathode.
It said: "Alumina production was marginally lower at 326 Kt vs 328 Kt in Q2FY'13, on account of lower production at Belgaum refinery, reflecting the constraints in the availability of bauxite for this plant."
It added that Mahan Aluminium, Hirakud FRP and Utkal Alumina projects are in the final stages of implementation and are "expected to be ready for trial runs very shortly".
The company scrip was at Rs 109.45 on the BSE at the fag-end trade today, down 3.44 percent from the previous close.