Hindalco Industries reported a higher-than-expected net profit at Rs 294 crore in the quarter-ended June even as net sales declined on a year-on-year basis, mainly because of a sharp fall in expenses. The company's bottom line stood at Rs 61 crore in in the year-ago period.
Net sales stood at Rs 7,597 crore, down 13 per cent from same period last year due to weakness in copper business.
In aluminium, higher production and stabilisation of operations helped the business while copper took a hit due to lower production in the quarter. However, realisations dropped due to fall in London Metal Exchange prices, which hit the top line. Average LME prices for aluminium and copper were lower by 11 per cent and 22 per cent, respectively, as against the corresponding period last year.
Net sales stood at Rs 7,597 crore, down 13 per cent from same period last year due to weakness in copper business.
In aluminium, higher production and stabilisation of operations helped the business while copper took a hit due to lower production in the quarter. However, realisations dropped due to fall in London Metal Exchange prices, which hit the top line. Average LME prices for aluminium and copper were lower by 11 per cent and 22 per cent, respectively, as against the corresponding period last year.
As per Blomberg estimates, topline of the Aditya Birla Group company was seen at Rs 8,389 crore in quarter gone by, while net profit was expected to be at Rs 214 crore.
Lower power and fuel costs have helped Hindalco's total cost came down significantly by 19 per cent in turn helping ebitda move up despite lower revenues.
The company's EBITDA in the June quarter stood at Rs 1,351 crore as against Rs 1,004 crore in the corresponding period last year.
Hindalco witnessed fall in coal costs as its 25 per cent requirement is now secured after it got coal linkages at a reasonable premium rate to government notified price.