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Journalism of Courage
Aditya Birla Groups flagship company Hindalco Industries Ltd said Tuesday its net profit for the fiscal fourth quarter fell 9.6% as it paid higher for raw materials and weak prices of aluminum on the London Metal Exchange.
Net profit for the quarter stood at Rs 640 crore driven by higher volumes by selling copper than from main product alumium,as compared to Rs 708 crore in the same quarter last year.
The companys net sales increased by nearly 12% to Rs 7,647 crore from Rs 6,846 crore in the same quarter last year. Increase in net sales was driven by higher volumes despite lower realisations, the company said in a statement.
The copper business of the company contributed more to the net sales than the aluminum business. Coppers contribution to the topline was Rs 5,154 crore while aluminums contribution was Rs 2,499 crore.
Profit before interest and taxes or PBIT in the copper business was also up 43% at Rs 293 crore even as the aluminum business Profit before Interest and Tax or PBIT fell nearly 14% to Rs 484 crore.
For the full fiscal year 2011-12,Hindalcos net profit grew 4.6% to Rs 2,237 crore from Rs 2,137 crore last year. Net sales grew 11.4% to Rs 26,597 crore from Rs 23,859 crore last year.
In the aluminum business there has been significant cost increase, the company said in a statement. Cost of coal has gone up by 20%,furnace oil by 40%,caustic soda by 25% and carbon by 30%. The cost surge was partly offset by asset sweating and improving operational efficiencies.
On Tuesday,Hindalcos shares were trading 1.03% higher at Rs 117.25 on the BSE.
