Hindalco posts smaller-than-expected profit on weak prices

MUMBAI: Hindalco Industries’ net profit for the quarter ended September fell 0.5% to Rs. 357.11 crore, compared with Rs. 358.88 crore in the same quarter last year.

Analysts were expecting a standalone net profit of Rs. 401.8 crore, according to a poll conducted by Bloomberg.

Net sales of the company, controlled by industrialist Kumar Mangalam Birla, inched up 2% to Rs. 6245.56 crore. Bloomberg poll had forecasted it at Rs. 6833.2 crore.

Hindalco is staring at coal shortage as chances of getting clearances for 4 coal block allotted after 2005 have dimmed. It currently has only one captive coal mine, called Talabira I, which may run out of coal in a few years.

“Greenfields projects are ramping up as planned, however EBITDA streams will take time to scale up with delayed access with delayed access to captive coal,” the company said in a statement.