Aditya Birla Group firm Hindalco Industries on Friday reported a 3.7% year-on-year decline in standalone net profit to Rs. 433.5 crore for the October-December quarter from Rs. 451 crore a year ago, mainly on subdued sales and a sharp increase in finance costs on account of higher
borrowings.
The company's finance costs surged 113% to Rs. 168.9 crore, while other income rose nearly 3.5 times to Rs. 318.1 crore.
Net sales rose 3% to Rs. 6,789.9 crore during the third quarter against Rs. 6,590.2 crore in the corresponding quarter of the previous fiscal year. Higher volumes resulted in a 11% increase in revenue from operations on a sequential basis. Its EBITDA (earnings before interest, taxes, depreciation and amortisatio) grew by 13% during the period.
"Finance cost rose on account of greater average borrowings during the quarter. The company drew $100 million finance from Export Development Canada for its Mahan aluminium project. This is part of the overall financial closure for the project," the company said in a statement.
The company's revenues from aluminum business was down nearly 1% to Rs. 2,215.5 crore, while revenues from copper business went up 5.5% to Rs. 4,660.8 crore during the quarter. Alumina production was lower at 326 Kt during the third quarter against 328 Kt in the second quarter on account of lower production at the company's Belgaum refinery, reflecting the constraints in the availability of bauxite for the plant.