Hindalco Industries Limited Q1 FY 2007-2008 results

Aditya Birla Group flagship Hindalco Industries Ltd has reported net sales and operating revenues have grown by 9 per cent to Rs.4677.9 crores as compared to Rs.4,273.7 crores in the corresponding period in FY 07and marginally higher net profit of Rs602.9 crore vis-à-vis Rs601.5 crore in the corresponding period of previous year.

The aluminium business contributed Rs1,753.7 crore with production at the the highest ever in a quarter. Aluminum metal sales volume rose by 7.6 per cent along with higher proportion of value added products.

The profit before interest and tax for aluminium business was lower by 10 per cent from Rs712.5 crores in the corresponding quarter in the earlier year to Rs642 crore, mainly on account of the sharp fall in alumina realisation, impact of custom duty cut on imports and above all the sharp appreciation of the Rupee against dollar.

The Rupee has appreciated 9.1 per cent from Rs45.77 in Q1 FY 07 to Rs41.49 in the current quarter. On the positive side, the aluminium business benefited from higher LME prices, better operating efficiencies, enhanced volumes through better capacity utilisation and reduced input costs due to better procurement management as well as softening international prices.

In the copper business, revenues stood at Rs2,926.2 crores driven by higher sales volumes and improved realisation due to an enriched product mix. The profit before interest and tax increased to Rs112.3 crores from Rs97.8 crores in the corresponding quarter last year.