Hindalco net profit falls 4%, new units to go on stream next fiscal
Hindalco, Aditya Birla Group's flagship company, today reported a 4 per cent fall in net profit at Rs 433.52 crore in the December quarter amid higher finance cost of Rs 169 crore, but sees growth ahead on account of its mega projects going on stream next fiscal.
"Our financial cost more than doubled to Rs 169 crore in the reporting quarter against Rs 79 crore in the same period last year due to higher borrowings," Hindalco Managing Director D Bhattacharya told reporters here this evening.
During the quarter, the company drew USD 100 million finance from the Export Development Canada (EDC), the export credit agency, for its Mahan Aluminium Project.
Net sales moved up to Rs 6,789.90 crore during the quarter vis-a-vis Rs 6,590.23 crore in the corresponding period, he said.
The other income contributed to a whopping Rs 312 crore as one-time earnings, which includes Rs 144 crore treasury income in the said quarter, he added.
Though the numbers were above street expectation, the Hindalco stock was battered as the numbers were boosted by a one-time income, and not core operations, analysts said.
The stock fell 3.2 per cent to Rs 109.75 on the BSE.
Commenting on the numbers, Nirmal Securities senior analyst Giriraj Daga said though the standalone performance is in line with his expectation but its overall net profit beat expectations due to a one-time gain of Rs 144 crore and not from operations.
He also noted that the company's other income jumped 253 per cent y-o-y and 140 per cent q-o-q to Rs 318
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