Hindalco Q4 net up 7% at Rs 708 crore
Hindalco's operating profit in excess of Rs 1k cr despite steep input cost escalations and a fall in refinery charges at the copper division.
By ET Bureau | Updated:
MUMBAI: Hindalco Industries, part of the Aditya Birla Group, said its fourth quarter net profit rose about 7% due to higher product prices and increased production of expensive products despite steep input costs.
Hindalco, which released its unaudited standalone financial figures late on Monday, said net profit in the January-March quarter rose to Rs 708 crore compared to Rs 664 crore last year. Revenue in the same period grew 27% to Rs 6,846 crore.
"It was a satisfactory quarter," said managing director Debu Bhattacharya. "A combination of factors and our move to sell more in the local market increased profitability." The company sells 65% locally and exports high value products which can absorb higher freight costs.
Raw material costs, which for Hindalco would include power and coal, rose 53% in the quarter. "But we managed to counter that by making more of speciality aluminum products and by reducing the cost used to make the metal," said Bhattacharya.
Hindalco's operating profit in excess of Rs 1,000 crore, is among the highest globally, despite steep input cost escalations and a fall in refinery charges at the copper division, said a company statement.
Globally, aluminium demand remained strong in the last quarter with a growth of 10%. North America and Europe reported a strong rebound, growing in double digits, helped by buoyancy in the automotive sector. "The healthy trend in global demand is likely to continue," said a Hindalco statement, adding that Indian aluminium industry growth levels in the current fiscal are likely to match India's GDP growth of about 8-9%.
Hindalco also announced two board appointments. Auto industry veteran Jagdish Khattar and global management guru Ram Charan were inducted as independent directors. Charan, a Harvard Business School graduate, is a highly acclaimed business advisor and author of management books. He has also served on the Harvard Business School faculty. He is a globally renowned consultant to several prominent CEOs of some of the world's largest and most credible companies. Khattar had been chief executive and managing director of Maruti Suzuki till December 2007.
Hindalco, which released its unaudited standalone financial figures late on Monday, said net profit in the January-March quarter rose to Rs 708 crore compared to Rs 664 crore last year. Revenue in the same period grew 27% to Rs 6,846 crore.
"It was a satisfactory quarter," said managing director Debu Bhattacharya. "A combination of factors and our move to sell more in the local market increased profitability." The company sells 65% locally and exports high value products which can absorb higher freight costs.
Raw material costs, which for Hindalco would include power and coal, rose 53% in the quarter. "But we managed to counter that by making more of speciality aluminum products and by reducing the cost used to make the metal," said Bhattacharya.
Hindalco's operating profit in excess of Rs 1,000 crore, is among the highest globally, despite steep input cost escalations and a fall in refinery charges at the copper division, said a company statement.
Globally, aluminium demand remained strong in the last quarter with a growth of 10%. North America and Europe reported a strong rebound, growing in double digits, helped by buoyancy in the automotive sector. "The healthy trend in global demand is likely to continue," said a Hindalco statement, adding that Indian aluminium industry growth levels in the current fiscal are likely to match India's GDP growth of about 8-9%.
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Hindalco also announced two board appointments. Auto industry veteran Jagdish Khattar and global management guru Ram Charan were inducted as independent directors. Charan, a Harvard Business School graduate, is a highly acclaimed business advisor and author of management books. He has also served on the Harvard Business School faculty. He is a globally renowned consultant to several prominent CEOs of some of the world's largest and most credible companies. Khattar had been chief executive and managing director of Maruti Suzuki till December 2007.
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