Fragile economy may reduce risk appetite of funds: Hindalco

Hindalco Industries' December quarter net profit fell 4 percent to Rs 434 crore, year-on-year on higher finance cost. D Bhattacharya, MD Hindalco spoke to CNBC-TV18 regarding the result, market expectations, strategies and the challenges ahead.
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Home » News » Earnings » Results Boardroom

Feb 09, 2013, 12.58 AM | Source: CNBC-TV18

Fragile economy may reduce risk appetite of funds: Hindalco

Hindalco Industries' December quarter net profit fell 4 percent to Rs 434 crore, year-on-year on higher finance cost. D Bhattacharya, MD Hindalco spoke to CNBC-TV18 regarding the result, market expectations, strategies and the challenges ahead.

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Fragile economy may reduce risk appetite of funds: Hindalco

Hindalco Industries' December quarter net profit fell 4 percent to Rs 434 crore, year-on-year on higher finance cost. D Bhattacharya, MD Hindalco spoke to CNBC-TV18 regarding the result, market expectations, strategies and the challenges ahead.

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We are investing almost USD 8 billion in India, in Greenfield and USD 1.5 billion in the Valleys and that is a lot of money

- D Bhattacharya (MD)

Hindalco Industries' December quarter net profit fell 4 percent to Rs 434 crore, year-on-year on higher finance cost . The company's finance cost rose to Rs 169 crore from Rs 79 crore, YoY on account of greater average borrowings. D Bhattacharya, MD Hindalco spoke to CNBC-TV18 regarding the result, market expectations, strategies and the challenges ahead.

Bhattacharya says that overall, Hindalco performed very well. The profit before interest, tax, depreciation and amortization (PBITDA) moved up by 39 percent QoQ which is excellent growth. "It has been done both by aluminium and copper. Copper has been doing well and therefore the credit is even more, because it has done an 8 percent improvement of EBITDA over Q2 EBIT. I believe copper will continue to do well but not spectacularly better," adds Bhattacharya.

Bhattacharya also believes that the macro economic factors are very fragile. If things don’t go terribly wrong the company should continue to perform. However, if things take a nosedive, that will make the risk appetite of the funds go very low.

"We got to consolidate the investments that we have made both Greenfield as well as in the Valleys. We are investing almost USD 8 billion in India, in Greenfield and USD 1.5 billion in the Valleys and that is a lot of money," says Bhattacharya.

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