Hindalco net profit up 38% in 2011-12
Metal major Hindalco Industries, the flagship company of the Aditya Birla Group, on Wednesday reported a consolidated net profit of Rs. 3,397 crore for 2011-12, registering a 38% growth over the previous fiscal.business Updated: Jun 28, 2012 00:14 IST
Metal major Hindalco Industries, the flagship company of the Aditya Birla Group, on Wednesday reported a consolidated net profit of Rs. 3,397 crore for 2011-12, registering a 38% growth over the previous fiscal.
On the back of strong performance of its overseas subsidiary Novelis and its copper business in India, Hindalco reported 12% growth in consolidated revenue at Rs. 80,821 crore — the highest ever for the company — in financial year 2011-12.Novelis, Atlanta-based aluminium manufacturers that Hindalco has acquired, showed 5% growth in revenues at Rs. 63,439 crore ($11.1 billion). During the last fiscal, Novelis completed the acquisition of 31.3% of the outstanding shares of its Korean subsidiary for $344 million, raising its ownership to 99%.
In the domestic business, higher London Metal Exchange prices helped copper business report a rise of 16% to Rs. 18,379 crore. Hindalco’s three aluminium smelters will be commissioned this year. Hindalco board of directors recommended dividend of Rs. 1.55 per share aggregating to Rs. 344.9 crore (including dividend distribution tax of Rs. 48.1 crore) for the year ended 31st March, 2012, said a company release .
Despite economic headwinds, the balanced portfolio approach, low cost operation and strong value added businesses resulted in commendable performance, said the release.
Hindalco announced to the BSE that the completed issuance of secured redeemable non-convertible debentures worth Rs. 1,500 crore on private placement basis at the coupon of 9.55%. The proceeds will be used for capital expenditure, working capital and refinancing the existing debt.