Hindalco Q2 profit up 16% at Rs 503 cr | business | Hindustan Times
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Hindalco Q2 profit up 16% at Rs 503 cr

business Updated: Nov 10, 2011 20:51 IST
HT Correspondent

Cost escalations and constraints in bauxite and coal availability due to heavy monsoons this season impacted Aditya birla group company Hindalco Industries net profit and revenue growth for the second quarter ended September.

Compared to last financial year’s second quarter growth rates of 26.1% in net profit and 19.2% in revenues, this year the company’s net profit growth declined to 16% while revenue growth slumped to 7%.

Hindalco reported a second quarter net profit of R503 crore against R434 crore in the corresponding quarter last fiscal while its revenues were Rs 6,272 crore against R5,860 crore in the same quarter in 2010-11.

“There were regional disturbance like floods in Orissa and Jharkhand which impacted production,” said D Bhattacharya, MD, Hindalco Industries and added that there will be a demand supply mismatch in the current and next fiscal year.

In a presentation, the company said it expects a continued excess supply, with world production to exceed demand by 0.8 million tonnes in 2011 and by 1.2 million tonnes in 2012.

The company also reported its half yearly results, with net profit for the first half of 2011-12 up 18%, to Rs 1,147 crore from R968 crore in the same period last fiscal while revenues grew by 11%, to Rs 12,303 crore in the half year ended September 30 from R11.038 crore in the same period last year.

Providing an outlook for the remaining six months of the fiscal, the company said that it will be “difficult due to global uncertainties, falling LME prices and persisting cost pressures.”