Hindalco Q3 PAT down 2%, high input cost a concern

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Hindalco Q3 PAT down 2%, high input cost a concern

Hindalco Industries, country's largest aluminium manufacturer, has reported a net profit of Rs 450 crore in the October-December quarter of FY12, a fall of 2.2% as compared to Rs 460.3 crore in a year ago quarter.

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Higher raw material cost marginally trimmed Hindalco Industries' December quarter profits to Rs 450 crore as against Rs 460.3 crore, the company posted in the year-ago period. However, sales rose 11% to Rs 6,590 year-on-year on higher volumes and better realisation from both its aluminium and copper verticals.

The Aditya Birla led company said it posted satisfactory results despite raw material cost surging 34% to Rs 738 crore y-o-y. At the same time, the company also expressed concern on the volatile London Metal Exchange (LME) prices, foreign exchange fluctuations along with spiraling cost of fuel to be a major challenge in the short term.

On segment wise performance, the company said:

Higher volumes and slightly improved realisation resulted in a 13% growth in aluminum revenues to Rs 2236 crore but spiraling input cost hurt its EBIT. Also, LME prices of aluminum dropped 13% to $2,105

During the quarter, the company deployed Rs 21,172 crore capital to expand capacities in its ongoing projects including Mahan and Hirakud rolled and Aditya Aluminium Projects.

Its copper vertical too witnessed around 10% increase in its revenues to Rs 4418 crore on the back of higher LME and by-product credits. Copper volumes rose on account of improved efficiency. The segment's PBT also rose 51% to Rs 216 crore.

Shares of the company pared some of its losses of early morning trade and was down marginally to Rs159.20 post the earnings announcement.