Aluminium maker Hindalco today said its standalone net profit more than doubled to Rs 356 crore for the quarter ended March 2016 helped by growth in sales of value-added products as well as cost efficiencies.
The flagship firm of the Aditya Birla Group had clocked a net profit of Rs 160 crore in the year-ago period, it said in a regulatory filing.
Standalone revenue of the company, however, declined by 7.5 per cent to Rs 8,668 crore in January-March quarter of last fiscal from Rs 9,372 crore during the same quarter of 2014-15 due to decline in realisations from aluminium and copper.
The firm said aluminium production rose year-on-year (y-o-y) 27 per cent to 307 kilo tonnes (KT) as well as there were significant cost efficiencies achieved with supportive input costs and decline in coal and crude derivative prices.
The firm witnessed a strong growth in aluminium value added products (FRP and Extrusions). besides, wire rod output rose by 69 per cent y-o-y reflecting a strong focus on power sector, it added.
A strong increase in aluminium volumes following the increased production and the firm’s thrust on vale addition across businesses helped it partially offset the impact of sharp fall in realisations.
The weaker rupee also enabled the firm to partially offset the impact of the drop in realisations. The lower cost of raw materials, especially energy inputs was a major relief during the quarter.
Hindalco also said that its Managing Director D Bhattacharya will be demitting office, with effect from July 31, 2016, and will be appointed as Vice Chairman on the Board.
Bhattacharya will be replaced by Deputy MD Satish Pai with effect from August 1, 2016.
For the entire 2015-16, Hindalco’s standalone net profit was lower at Rs 607 crore from Rs 925 crore in 2014-15. Revenue was also lower at a lakh crore against Rs 1.05 lakh crore during the same period.
In the filing, Hindalco said exceptional items include impairment of fixed assets of Rs 118.89 crore and a write down in value of inventories at Rs 52.20 crore of Birla Nifty Pty Ltd, a company subsidiary.
This was as a result of potential decrease in (copper) Cu grade in the ore for remaining life of the mine, economically unviable of recovery of copper and change in macro economic conditions, it added.