Hindalco posts net profit of Rs 642.8 cr as Q2 results

Mumbai, Oct 31 (UNI) Hindalco Industries Ltd (HIL), the flagship company of the Aditya Birla Group, today posted a net profit higher by eight per cent at Rs 642.8 crore for the second quarter eneded September this year, as against Rs 597.6 crore during the same period last year.

Net sales and operating revenues have grown by seven per cent to Rs 4,959.7 crore as compared to Rs 4,634.2 crore in the corresponding period in FY-07. Despite the strenthening of the rupee, the aluminium price has lowered.

Of the total revenue of Rs 4,959.7 crore, aluminium business contributed Rs 1,785 crore on the back of production growth of eight per cent. Margins were maintained due to increased value added products, better sales mix and higher sales volume. The value added products in volume terms increased by 11 per cent and 15 per cent in rolled and extrusion products respectively.

The profit before interest and tax for aluminium business was lower at Rs 662 crore from Rs 671 crore in the corresponding quarter in the earlier year mainly on account of the sharp appreciation of the rupee against USD and the impact of custom duty cut in imports.

The rupee has appreciated 11 per cent from Rs 46.21 against per USD in Q2 FY-07 to Rs 41.15 against per USD in the current quarter.

The aluminium business benefited from higher London Metal Exchange (LME) prices, greater efficiencies, enhanced volumes through better capacity utilisation and reduced input costs due to better procurement management.

In the copper business, revenue stood at Rs 3,178.3 crore from Rs 2,782.5 crore in Q2 FY-07 driven by higher sales volumes and realisation resulting from an enriched product mix.

The profit before interest and tax grew marginally at Rs 126.1 crore from Rs 123.3 crore in the corresponding quarter last year despite the fall in TcRc due to better by-prodct realisation and improvement in operational effiency.

UNI