Hindalco Industries share price surged over 10 per cent in early trade on Monday after 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.
Hindalco Industries shares surged over 10 per cent in early trade on Monday after 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.
At 10.17 am, share price of the company was trading 10.18 per cent up at Rs 101.20. The scrip opened at Rs 99.80 and has touched a high and low of Rs 102.10 and Rs 98.25, respectively, in trade so far. Sensex was trading 1.74 points up at 26,655.34 during the same time.
The company’s standalone revenue 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.