Aluminium maker Hindalco has reported a steep 95 per cent decline in its consolidated net profit at Rs 44.8 crore for the fiscal ended March 2016. The flagship firm of the Aditya Birla Group had clocked a net profit of Rs 854.2 crore in the year-ago period, it said in a regulatory filing. Total consolidated income of the firm also declined, albeit by 4 per cent, to Rs 1,00,042.16 crore in 2015-16, from Rs 1,04,281.10 crore in 2014-15. Total expenses of the firm were, however, lower at Rs 95,537.82 crore as against Rs 98,927.09 crore during the period under review.
“Exceptional items (net) include impairment of fixed assets of Rs 450.91 crore and writedown in value of inventories of Rs 125.62 crore of Birla Nifty Pty Ltd, a subsidiary of the company,” the firm said in the filing. Consequent to approval of Scheme of Amalgamation of Aditya Birla Chemicals (India) (ABCIL), a subsidiary of the company, with Grasim Industries by the respective high courts, the amalgamation has since been approved by the board of Grasim to make it effective April 1, 2015, it added.
Accordingly, current year’s results of ABCIL have not been included in consolidated results of the company. However, for the year ended March 2015, group’s share in ABCIL’s net profit was Rs 20.38 crore and to that extent, the current year’s consolidated profit is not comparable, it clarified.