Hindalco Q3 profit plunges 89% to Rs 40.46 crore

MUMBAI: Hindalco Industries Ltd on Tuesday said its standalone net profit fell 89% in the December quarter on lower price realizations as aluminium prices continued to slide in the global commodity slowdown.

Net profit was Rs 40.46 crore, compared with Rs 359.36 crore in the same period last year. Net sales fell 5% to Rs 8021.23 crore on sharp decline in aluminium prices and copper margins. Aluminium earnings before interest and tax fell 79% to Rs 81 crore while copper EBIT fell 12% to Rs 348 crore.

"Operating results of the quarter were seriously impacted by the sharp drop in London Metal Exchange prices and regional aluminium premium, macro-economic factors beyond the company's control," Hindalco said in a statement.

Aluminium realisations fell Rs 700 per tonne. Higher volumes with new production coming in from new smelters in Madhya Pradesh and Odisha, and softer input prices, cushioned the fall. Primary aluminium production jumped 35% to 296 kilo tonne.

Analysts, on an average, were expecting a net loss of Rs 174.70 crore on revenue of Rs 8337.20 crore, according to a Bloomberg poll. The Hindalco board approved selling nonconvertible debentures worth Rs 1,500 crore and raising a term loan of up to Rs 2,000 crore.