Hindalco Q1 net up 21% at 644 crore

MUMBAI: Hindalco Industries, the flagship of the Aditya Birla Group, said on Friday its fiscal first quarter net profit rose 21% due to high metal prices, that offset the adverse impact from high costs.

Hindalco said its profit in the April-June period was up at 644 crore, compared to 534 crore last year. Revenue in the same period grew 16% at 6,031 crore.

"The adverse impact of strong inflationary pressures largely in energy products and rupee appreciation were mitigated by improved efficiencies in copper and aluminium businesses.

Higher value-added by-product credit and treatment and refining charges in the copper business also contributed towards sustaining the company's performance," Hindalco said in a statement late on Friday.

Hindalco, however, gave a cautious outlook for the coming quarters as metal prices on the London Metal Exchange could be impacted due to the macroeconomic situation the US and Europe. The Birla company, which has interests in copper and aluminum, earns most of its income in the copper business from smelter refining fees which it charges from miners for converting copper ore into metal.

Of the 6,031 crore revenue, the aluminium business contributed 2,093 crore. The operating profit at 599 crore was up 8%. "The results would have been better, but for increased input costs, especially coal and an appreciating rupee," the Hindalco statement added. In copper the revenue was higher at 3,940 crore, a rise of 19% over last year.

Shares of Hindalco fell 4.5% to 150.20 in a weak trading market on the BSE on Friday.