Indian aluminium and coal producer Hindalco Industries Ltd posted a steep 78 percent drop in quarterly net profit, hurt by a one-time provision for additional levies related to the deallocation of one of its coal mines.
The Supreme Court in September scrapped over 200 coal blocks allocated since 1993, hurting power, steel and cement companies that had invested heavily in projects around the concessions.
Hindalco posted a net profit of 787.7 million rupees ($12.8 million) for the three months ended Sept. 30, its second quarter, down from 3.57 billion rupees, a year earlier.
The profit was hit by exceptional items of 4.31 billion rupees, which included a 5.63 billion-rupee provision towards an additional levy on coal extracted from a company-operated mine that was deallocated, Hindalco said in a statement.
However, the flagship company of the Aditya Birla conglomerate posted strong operating results with rising production levels boosting net sales 37 percent to 84.73 billion rupees for the quarter.
Hindalco also said it proposed to participate in government auctions for “suitable coal blocks” to meet future coal requirement.
The company’s shares ended up 0.3 percent in a Mumbai market that closed down 0.24 percent.