Hindalco Industries, the flagship company of the Aditya Birla Group, on Friday reported a 711% growth in its consolidated net profit to Rs 3,925.95 crore for 2009-10, against Rs 483.89 crore in 2008-09. Consolidated results include pre-tax adjustments for unrealised derivatives gain of Rs 2,736.4 crore in FY10 and a loss of Rs 2,380.7 crore in FY09 at Novelis, the company said.
Hindalco’s consolidated net sales during the year stood at Rs 60,722.11 crore, down 7.95% as compared to Rs 65,962.95 crore last year. This was mainly due to lower aluminum prices and softness in the company’s end-markets in the first half of the year, especially for Novelis.
?Profit before depreciation, interest and taxes during the year soared to a record level of Rs 10,069 crore from Rs 3,661 crore in FY09, as this includes $578 million of unrealised gains consisting of $504 million reversal of previously recognised losses upon settlement of derivatives and $74 million of unrealised gains relating to mark-to-market adjustments on metal and currency derivatives at Novelis,? Hindalco said in a statement.
Profit before depreciation, interest and taxes soared to a record Rs 10,069 crore from Rs 3,661 crore in FY09.
Hindalco’s copper business revenues increased 13% to Rs 12,575 crore and EBIT trebled from Rs 374 crore to Rs 1,003 crore. However, aluminium business revenues fell by 11% to Rs 48,091 crore on the back of lower LME and lower demand in the first half of the year.
Hindalco shares closed 1.23% higher at Rs 147.85 on the Bombay Stock Exchange on Friday, while the benchmark 30-share Sensex rose 0.56%.
Due to softer end-market conditions in most of the regions during the first half of the year, Hindalco subsidiary Novelis reported a 2% decrease in shipments of aluminium rolled products to 2,708 kilotonne, compared to shipments of 2,770 kilotonne in the previous year.
Moreover, driven by lower aluminum prices and softness in the company?s end-markets in the first half of the year, Novelis?s net sales dropped 15% during the year to $8.7 billion, compared to the $10.2 billion in FY09.In order to debottleneck and increase capacity, primarily in South America and Asia, Novelis has increased its capital expenditure plan by approximately $150 million for FY11 compared to the previous year.
?A significant amount is aimed at expanding rolling operations in Brazil. This investment will increase capacity by over 50% and better support the increasing demand for flat rolled products in the regions. The expansion is expected to be completed by late 2012,? the company statement said. The company expects Noveli?s South American and Asian markets to continue growing, whereas North America and Europe are expected to see moderate increase in demand. The management remains cautiously optimistic for FY11 before the quantum growth leap, the company said.