Hindalco Industries, the flagship firm of the Aditya Birla Group, has posted a 12 per cent rise in net profit at Rs 720 crore for the second quarter on higher metal prices.
The company’s short-term outlook seems to be negative on likely economic recession and resultant global slowdown in aluminium and copper demand. The company’s export income rose on weaker rupee, while rising input cost, lower production of downstream products have hit profit to an extent.
Total income has risen by 15.59 per cent to Rs 58,599.50 crore as its aluminium and copper sales increased by 18 per cent and 12 per cent, respectively. The aluminium sales stood at Rs 2,120.5 crore, driven by increased production and higher price.
As aluminium price has fallen nearly to $2,050 on the London exchange, the company is ramping up brownfield expansion, containing input costs and maximising fresh cash flow through rearranging its working capital, said Debu Bhattacharya, managing director, Hindalco.
Its revenue from the copper business stood at Rs 3,565.3 crore on the back of higher realisation and enriched product mix.
