Hindalco performance to remain affected this fiscal: KM Birla

MUMBAI: Aditya Birla Group chairman Kumar Mangalam Birla said following the full ramp up of new projects, Hindalco Industries’ financial performance would remain significantly impacted with interest and depreciation flow through in the current financial year.

Aluminium major Hindalco is also under pressure due to weak aluminium prices on poor demand from China, which consumes almost half of global aluminium production.

The company reported a net profit of Rs. 107.19 crore for the quarter ended June, down 67 per cent from the corresponding quarter a year ago.

"It is in this context that the short term outlook for domestic aluminium business would be testing. In the coming years, the focus will continue to be on operational excellence and increasing the productivity of new assets," Birla said at Hindalco's annual general meeting on Wednesday.

Hindalco lost four captive mines allocated to it after Supreme Court's order in September last year. In the coal mine auctions that followed, the company won 3 coal blocks that would meet 25% of its annual coal requirement.