Hindalco Q3 net falls 23% to Rs334 cr despite 15% rise in revenue
13 February 2014
Aditya Birla Group company Hindalco Industries has reported a 23-per cent decline in its third quarter net profit to Rs333.98 crore on the back of higher effective tax rate for the quarter.
Hindalco said profit for the October-December 2013-14 quarter stood at Rs333.98 crore against Rs433.52 crore in the year-ago quarter while net sales increased 6 per cent to Rs7,201 crore compared to same quarter last year, driven by higher volume.
Tax expenses jumped to Rs135 crore during the quarter against Rs109 crore in a year-ago quarter.
Hindalco's revenue from operations rose 15 per cent to Rs7,273 crore year-on-year in Q3-FY14, driven by higher volume, while improved operating efficiencies cushioned the adverse impact of higher input cost and lower realisation.
Other income rose on account of better yields from investment.
Hindalco said its greenfield projects are ramping up well. The Mahan smelter produced 18 Kt of aluminium metal and Utkal Alumina International Limited produced 87 Kt of alumina in Q3-FY14 while the Aditya smelter produced first metal produced at Aditya Smelter in January 2014.
Of the total revenues of Rs7,273 crore, aluminium business contributed Rs2,471 crore in Q3-FY14 against Rs2,343 crore in Q2-FY14, while EBIT for the quarter stood at Rs170 crore against Rs166 crore in Q2-FY14.
Aluminium sales were higher on the back of higher volume despite realisation being lower. Quarterly aluminium production at 158 Kt has been the highest ever.
In the copper business, revenues were higher at Rs4,817 crore, up 21 per cent from Rs3,974 crore in Q2-FY14, driven by higher copper LME and by-product realisation.
Cathode production was 89 Kt during the October-December 2013 quarter against 84 Kt in Q2-FY14. Copper business delivered highest ever EBIT of Rs300 crore during the quarter.