Hindalco reported a 29 per cent drop in its net profit for the second quarter of 2012-13 at Rs. 359 crore on lower revenues of Rs. 6,164 crore (Rs. 6,272 crore).
The company’s earnings before interest, taxes, depreciation, and amortisation (EBIDTA) and other income were lower by 22 per cent at Rs. 515 crore and 40 per cent at Rs. 132 crore, respectively. The operating margin, too, was lower at 7.6 per cent (9.9 per cent).
Of the total revenue, aluminium business contributed about a third at Rs 2,105 crore. The results were impacted by operational disturbances in both of the company’s smelters. While aluminium production was at 128,000 tonnes, sales of downstream products were at 62,000 tonnes, primarily due to lower production at the Belgaum refinery reflecting the constraints in bauxite for this plant. The company said “continuing cost pressures, particularly in case of coal and caustic soda, also strained the results.”
The capital employed in the aluminium business stood at Rs. 28,850 crore including Rs. 19,300 crore relating to the greenfield projects of Mahan, Hirakud Rolled and Aditya Aluminium projects. The revenue in the copper business was at Rs. 4,066 crore bolstered by better operational performance, increased volume and a weaker rupee. The capital employed in the copper business was unchanged at Rs. 6,200 crore.
