Hindalco Q1 net up 21% to Rs 644 crore on higher aluminium prices

MUMBAI: Higher aluminium prices, improved efficiency and better price realisation helped Aditya Birla group's flagship company Hindalco Industries to post a 21 per cent jump in its net profit to Rs 644 crore for the first quarter ended June 30, 2011.

The company had registered a net profit of Rs 534 crore in the corresponding period last year.

The company's net sales improved 16 per cent at Rs 6,031 crore despite flat volumes, mainly on the back of higher prices on the London Metal Exchange, Hindalco Managing Director D Bhattacharya told reporters here.

Adverse impact of strong inflationary pressures in energy products and rupee appreciation were mitigated by improved operating efficiencies in both its copper and aluminium businesses, he said.

Other income at Rs 178 crore was driven by improved treasury yield and an enhanced corpus, consequent to return of capital from Novelis. Other income is inclusive of Rs 69 crore received as dividend from the company's Australian subsidiary Aditya Birla Minerals.

EBITDA exceeded Rs 1,000 crore, despite steep input cost escalations. Better realisation, higher other income and improved operating efficiencies fuelled this rise, Bhattacharya said.

Of the Rs 6,031 crore revenue, aluminium business contributed Rs 2,093 crore as against Rs 1,867 crore in Q1FY11.

The results would have been better, but for the increased input costs (especially coal) and an appreciating rupee, he said.

The cost of production rose 20 per cent during the quarter, as fuel and electricity expenses climbed 25 per cent and raw material expenses rose 27 per cent, the company said.