On a sequential basis, the copper business performed better than the aluminium business

Aditya BIrla’s flagship Hindalco Industries net profit dropped by Rs 144 crore to Rs 359 crore for the second quarter ended September 30, 2012.

Total revenues for the company stood at Rs 6,164 crore as against Rs 6,272 crore for the same quarter last year. Pure earnings or EBITDA were Rs 515 crore crore versus Rs 660 crore last year. Hindalco blamed rising input prices for the year-on-year drop in its key numbers.

The company, however, said that sequentially its performance has improved. It said, “This has been driven by better realisation and higher volumes. That despite the continuing increase in input costs, Hindalco has put in a robust performance, is indeed commendable. The successful ramp-up of its smelter post the shutdown in Q1FY13 at its Copper Plant also bolstered the results.”

Hindalco cautioned about the future profitability and said, “The general slowdown coupled with stubbornly high cost of inputs may impact the business results of the Company in the near future.”

The finance cost for the second quarter ended September 30, too, dropped to Rs 28 crore from Rs 68 crore because of the repayment of a loan carrying higher interest rate, the company said.

On a sequential basis, the copper business performed better than its aluminium business. The earnings before interest and tax (EBIT) in the copper business zoomed by 175% to Rs 209 crore as against Rs 76 crore in the first quarter of the current fiscal.

The company said, “Superior performance in the Copper Business during this quarter more than offset the headwinds faced by the Aluminium Business, leading to a better overall operational performance.”

Out of the total revenues of Rs 6,164 crore, aluminium contributed to Rs 2,105 crore. Its aluminium sales were higher due to increased volume of value added downstream products and better metal premium realised by Hindalco. The company said, “In the Aluminium segment, results were impacted by operational disturbances in both the smelters of the Company.”

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