Hindalco Industries reported a 48.5 per cent drop in net profit for the fourth quarter of 2013-14 at Rs.248 crore on a 20.6 per cent higher revenue of Rs.8,435 crore. Operating profit rose 27 per cent to Rs.1,057 crore.
A statement from the Aditya Birla Group flagship attributed the drop in profit mainly to an exceptional item of Rs.396 crore which related to a liability of Rs.324 crore under the U.P. Entry Tax and Rs.72 crore under the Madhya Pradesh Gramin Avsanrachna Tatha Sarak Vikas Adhiniyam (MPGATSVA). Both these levies have been contested by the company and are pending before the Supreme Court, the company said. During the quarter, aluminium sales rose 22 per cent while copper sales grew 13 per cent.
For the year 2013-14, Hindalco reported a 16.8 per cent drop in net profit at Rs.1,413 crore on 7 per cent higher revenues of Rs.27,851 crore and a 13 per cent higher operating profit of Rs.3,616 crore. The company attributed the lower net profit to higher interest costs and exceptional items. Finance costs rose to Rs.712 crore (Rs.436 crore).
The board has recommended a dividend of Re.1 per share. On the BSE on Thursday, Hindalco stock rose 1.43 per cent to close at Rs.149.25.
