Hindalco net jumps 90% to Rs 597.6 cr

Mumbai, Oct. 18: Hindalco has reported a 74 per cent jump in second-quarter net sales and revenue at Rs 4,634.2 crore compared with Rs 2,659.3 for the same quarter last year.

Net profit zoomed 90 per cent to Rs 597.6 crore from Rs 313.8 crore in the same quarter a year back.
“We have seen a very strong EBIDTA margin, which has grown faster than the topline at almost 90 per cent,” managing director D. Bhattacharya said. The company has recorded a profit before tax of Rs 837.7 crore, a 110 per cent jump over Rs 398.2 crore in the same quarter last year.

Driven by strong aluminium prices on the LME, the revenue from the aluminium business recorded a 31 per cent jump from Rs 1,412.60 crore to Rs 1,852.00 crore. “Even as increased raw material prices exerted pressure on margins, profits have soared by 54 per cent to Rs 671 crore,” a company statement said.

Copper business revenues rose 123 per cent to Rs 2,782.50 crore due to higher copper prices. However, the company said high fuel prices continue to exert significant pressure on costs. “Copper has a long way to go before it matches the profitability of aluminium,” Bhattacharya said.