Aluminium major Hindalco Ltd's profit after tax grew by a modest 7.5 per cent at Rs 359 crore in Q3 FY15 due to a sharp rise in the finance costs.
The company had posted a net profit of Rs 334 crore in Q3 FY 14.
Hindalco's net sales jumped by 18 per cent at Rs 8,603 crore as compared to Rs 7,273 crore in the corresponding quarter of the previous year.
"Higher sales reflect increased volume and better realisation in both aluminium and copper businesses. However, significant higher finance cost and depreciation due to progressive capitalisation of the company's greenfield projects, net profit registered a 7.5 per cent increase at Rs 359 crore in December quarter," Hindalco Managing Director D Bhattacharya told reporters here.
The company's depreciation cost increased from Rs 200 crore to Rs 216 crore and finance costs from Rs 165 crore to Rs 447 crore in Q3 FY15.
Of the total revenue of Rs 8,603 crore, aluminium business contributed Rs 3,636 crore as against Rs 2,471 crore in Q3 FY14. As a result, the segment results of aluminium business went up from Rs 170 crore in Q3FY14 to Rs 384 crore in Q3FY15.
In the copper business, revenue stood at Rs 4,976 crore compared to Rs 4,817 crore in Q3FY14. The performance of the copper business reflected enhanced volume, better TcRc and improved by-product credit. The segment results rose from Rs 300 crore in Q3FY14 to Rs 396 crore in Q3FY15.
The company's metal production was up 37 per cent to 217 Kt as against 158 Kt in Q3FY14, consequent to the ongoing ramp-up at Mahan smelter and Aditya Smelter. On a sequential basis, the metal production is up by 16 per cent.
Alumina production (including Utkal) was up by 38 per cent to 593Kt over Q3FY14.
