Hindalco Industries has posted net profit of Rs 644 crore for the quarter ended June 30, up 21 per cent. Net sales, despite flat volumes, grew 16 per cent, at Rs 6,031 crore.
D Bhattacharya, managing director, said aluminium prices on the London Metal Exchange increased 24 per cent; copper rose by 22 per cent. However, rupee appreciation affected profitability. He said the increase in coal prices and crude derivatives impacted profitability negatively.
Net sales from the aluminium business grew 12 per cent and earnings before interest and taxes grew 8.5 per cent. Net sales from the copper business grew 18.9 per cent and Ebit surged 16.8 per cent.Bhattacharya said global concerns remain and sovereign debt concerns have eroded the ability to support growth.
He said even the emerging markets are slowing because of concerns on inflation control gaining prominence over growth. "Clouded growth outlook and the US rating downgrade do not augur well," he said.
He, however, stressed the fundamentals for the business continue to be strong.