 "Hindalco Q2 net dips 78% on higher provisioning, finance costs")
The decline was despite a Rs 361 crore forex gain and 36% rise in revenue.
The Aditya Birla Group's flagship company which is into the manufacturing of aluminium and copper had reported Rs 357 crore net profit in the July-September quarter of last fiscal, it said in a statement today.
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The company has made provision for Rs 563 crore liability towards additional levy of Rs 295 per tonne on coal extracted at its Talabira-I mine in line with the recent Supreme Court order. The mine started production in 2003-04
It has also kept aside Rs 258 crore towards diminution in carrying value of its investment in Aditya Birla Minerals, its Australia-based subsidiary, due to "significant decline in value" of the company's investment.
Hindalco, however, had a Rs 361 crore foreign exchange gain in connection with the receipt of Rs 1,394 crore from A V Minerals, Netherlands towards return of capital by reducing nominal value of shares. There was a Rs 29 crore write back of provision as well.
Profit before tax and exceptional item was Rs 539 crore vis-a-vis Rs 440 crore attained in the sequential quarter as well as the in the corresponding quarter of the previous year, the statement said.
Revenue of the company grew by 35.6% during the quarter to Rs 8,554 crore from Rs 6,304.85 crore a year ago.
Buoyed by higher volume and realisation, revenue from the Aluminium business grew to Rs 3,316 crore compared to Rs 2,343 crore a year earlier. Revenue from the copper business increased to Rs 5,247 crore from Rs 3,974 crore a year ago.
"Aluminium production was up substantially to 1.87 lakh tonnes vs 1.4 lakh tonnes in Q2 FY14, consequent to ongoing ramp up at Mahan smelter...Copepr production was higher at 96,000 tonnes as against 77,000 tonnes in Q2 FY14," it said.
The company attributed the Rs 203 crore rise in finance costs to Rs 386 crore on "progressive capitalisation of the company's greenfield projects".