JOIN USHindalco Industries, the flagship company of the Aditya Birla Group, reported a 122.5% increase in net profit for the quarter ended March 31, 2016, at Rs 356 crore compared with Rs 160 crore in the same quarter previous fiscal.
Revenues from operations for the company during the quarter declined 7.51% to Rs 8,668 crore from Rs 9,372 crore, a year ago. Revenues for the quarter were lower compared with the corresponding quarter of the previous financial year due to decline in aluminium and copper realisations.
The average LME prices (USD) for aluminium and copper were lower by 16% and 20%, respectively compared with the previous year. In aluminium business, the impact was much severe due to a sharp fall in the local market premium, which declined by around 75%; and a sharp surge in imports of aluminium in the country, the company said.
During the quarter, Alumina production (including Utkal refinery) at 703 KT (kilo tonnes) was 11 % higher compared with that in Q4FY15.
Aluminium metal production stood at 307 KT, and was up 27% (YoY). Higher production, improved efficiencies following stabilisation of most operations and supportive input costs resulted in a higher EBIT of Rs 517 crore; an increase of 69% over the corresponding quarter of the previous year, the company added.
However, a strong increase in aluminium volumes, following the increased production and our thrust on value addition across businesses helped us partially offset the impact of sharp fall in realisations. The weaker rupee also enabled partially offset the impact of the drop in realisations. The lower cost of raw materials, especially energy inputs was a major relief during the quarter, the company said.