Hindalco Q2 net profit down 29%
Hindalco Industries today reported 29 per cent decline in consolidated profit at Rs 359 crore for the second quarter of this fiscal and cautioned that the general economic slowdown and high input costs could impact its bottom line in the coming quarters.
The Aditya Birla Group flagship had clocked Rs 503 crore net profit in the same quarter of last fiscal.
Revenues from operations fell to Rs 6,164 crore in the second quarter compared to Rs 6,272 crore a year ago, the company said.
"Despite the continuing increase in input costs, the company has put out a better show. The successful ramp-up of smelter post-shutdown in first quarter at our copper plant also bolstered the results," Hindalco Managing Director D Bhattacharya told reporters here.
Despite poor numbers, investors were kind to the Hindalco counter, which recouped from nearly 3 per cent loss in intra-day to close at Rs 112.55, down 1.87 per cent, on the BSE whose main index gained 53 points today. In the run-up to the earnings, the share had shed over 3 per cent yesterday.
Bhattacharya cautioned that the general slowdown coupled, with the stubbornly high cost of inputs, may impact the business results of the company in the near future.
Hindalco produced 1.28 lakh tonne aluminium and 78,000 tonne copper during the quarter under review.
Lower finance costs and tax expenses at Rs 28 crore and Rs 88 crore, against Rs 68 crore and Rs 101 crore, respectively, from a year earlier, failed to spruce up the bottom line.
"Finance costs are lower for
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