Aluminium major Hindalco Ltd's profit after tax grew by a modest 7.5% at Rs 359 crore in Q3 FY15 due to a sharp rise in the finance costs. The company had posted a net profit of Rs 334 crore in Q3 FY 14. Hindalco's net sales jumped by 18% at Rs 8,603 crore as compared to Rs 7,273 crore in the corresponding quarter of the previous year.
"Higher sales reflect increased volume and better realisation in both aluminium and copper businesses. However, significant higher finance cost and depreciation due to progressive capitalisation of the company's greenfield projects, net profit registered a 7.5% increase at Rs 359 crore in December quarter," Hindalco Managing Director D Bhattacharya told reporters.
The company's depreciation cost increased from Rs 200 crore to Rs 216 crore and finance costs from Rs 165 crore to Rs 447 crore in Q3 FY15.
Of the total revenue of Rs 8,603 crore, aluminium business contributed Rs 3,636 crore as against Rs 2,471 crore in Q3 FY14. As a result, the segment results of aluminium business went up from Rs 170 crore in Q3FY14 to Rs 384 crore in Q3FY15.
In the copper business, revenue stood at Rs 4,976 crore compared to Rs 4,817 crore in Q3FY14. The performance of the copper business reflected enhanced volume, better TcRc and improved by-product credit. The segment results rose from Rs 300 crore in Q3FY14 to Rs 396 crore in Q3FY15.
The company's metal production was up 37% to 217 Kt as against 158 Kt in Q3FY14, consequent to the ongoing ramp-up at Mahan smelter and Aditya Smelter. On a sequential basis, the metal production is up by 16%. Alumina production (including Utkal) was up by 38% to 593Kt over Q3FY14.
Bhattacharya pointed out that the greenfield projects are ramping well. Volume and cost of production are expected to be on improving trajectory. The company's total net debt on standalone basis is estimated at Rs 15,000 crore as on December 2014.
Commenting on coal availability, Bhattacharya said it is posing a significant challenge for ongoing pot ramp-up at the upcoming Mahan and Aditya Smelters. The downstream value added production was impacted by adverse market demand conditions. With the coal auction planned shortly, the company is looking forward to a faster resolution to the coal availability issue, Bhattacharya said.
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