Hindalco Industries, an Aditya Birla Group company, has reported a 28 per cent drop in June quarter consolidated net profit, including Utkal Alumina, to ₹1,063 crore against ₹1,475 crore logged in the same period last year, due to a sharp fall in realisation.
Revenue from operations was down four per cent at ₹29,972 crore (₹31,078 crore) despite higher sales and lower cost of production. Ebitda during the quarter fell 13 per cent to ₹3,769 crore (₹4,334 crore) as aluminium prices dropped 21 per cent to $1,793 a tonne.
Satish Pai, Managing Director, said the demand for aluminium and copper was strong from large corporate clients though it slowed down from smaller players due to liquidity concerns.
Except for the sharp fall in LME prices, the company has no concern on domestic demand or raw material prices going ahead, he said.
Alumina production was down at 686,000 tonnes from 695,000 tonnes in the same period last year due to shut-down of operations at its subsidiary Muri Alumina due to a freak accident in April.
Aluminium metal production was up marginally at 326,000 tonnes (323,000 tonnes). Sales rose seven per cent to 320,000 tonnes (300,000 tonnes) with value-added products accounting for 24 per cent of total sales.
However, revenue from aluminium business was down three per cent at ₹5,472 crore (₹5,668 crore) due to lower realisations. Ebitda nearly halved to ₹889 crore (₹1,532 crore).
Copper production at 76,000 tonnes (81,000 tonnes) was lower by six per cent due to planned maintenance shut-down. Copper sales were unchanged at 82,000 tonnes. Revenue from copper was down eight per cent at ₹4,593 crore (₹5,012 crore). Ebitda was lower at ₹267 crore (₹347 crore) on lower by-product volumes and realisations.
Revenue of Novelis, the US subsidiary of Hindalco, was down 6 per cent at $2.9 billion due to a fall in average base aluminium price. Ebitda was up 11 per cent to record high of $372 million on higher can demand and lower aluminium prices. Net income was up 26 per cent at $145 million.
Net debt on Hindalco’s book was at ₹15,000 crore, while that on Novelis was $3.5 billion.