Hindalco's Q4 net down 9.65% on high input cost

Moneycontrol Bureau

Hindalco Industries , India's largest aluminium producer has reported a 9.65% fall in its net profit to Rs 640 crore due to lower tax provisioning last year (Q4FY11). The company incurred tax expenses of Rs 139.45 crore during the fourth quarter of FY12, against Rs 100.23 crore in the corresponding quarter last year.

Despite higher realization, the company's net sales increased 10.5% to Rs 7,563 on higher volumes.

Analysts on an average had expected the Aditya Birla Group Company to report a net profit of Rs 496 crore and sales to be around Rs 7,039 crore.

Post the company announcing its Q4 results, its shares rose 1.16% to Rs 117.40, as it posted better-than-expected numbers.

Earnings before interest, tax, depreciation and amortisation (EBITDA) too was higher than expectations at Rs 781 crore in the March quarter, down 5.67% compared to Rs 828 crore in the corresponding quarter of FY11.

D Bhattacharya, Managing Director, Hindalco said, "Going ahead, the volatile commodity prices and spiralling energy costs post significant challenge for the company." He further said that despite challenges, the company is confident to mitigate cost pressures on the strengths of integration in operations and other operational efficiencies.

Bhattacharya also said that the company’s aluminium business faced significant increase in costs due to 20% YoY hike in coal price. Cost of furnace oil was also up by 40% along with increase in price of other raw materials. Profit before interest and taxes stood at Rs 1,872 crore against Rs 2004 crore, YoY.

On the back of improved efficiencies, the company’s copper business recorded 33% increase in profit before interest and taxes at Rs 802 crore.

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