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Derivatives hit Hindalco, FY09 profit falls 80%

Derivatives hit Hindalco, FY09 profit falls 80%
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First Published: Wed, Jul 01 2009. 12 38 AM IST
Updated: Wed, Jul 01 2009. 12 38 AM IST
Mumbai: Aluminium producer Hindalco Industries Ltd, reported an 80% fall in full-year profit because of waning demand, higher raw material costs and derivatives losses.
Net income, including unit Novelis Inc., fell to Rs485 crore in 2008-09 from Rs2,390 crore a year earlier, the firm said in a statement to the Bombay Stock Exchange (BSE) on Tuesday. Sales rose 9% to Rs65,630 crore. The firm will pay a dividend of Rs1.35 a share. Hindalco shares, which fell 33% in the past year, dropped 1.6% to Rs86.45 on BSE. The benchmark Sensex fell 2%.
It reported a $519 million (Rs2,486 crore) derivatives loss, compared with $3 million a year ago. The losses arose after aluminium fell below the price it had paid in forward contracts while buying the metal.
Hindalco plans to raise $500 million by selling securities to institutional investors in the next six-eight weeks, chief financial officer S. Talukdar said at a conference.
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First Published: Wed, Jul 01 2009. 12 38 AM IST
More Topics: Company results | Hindalco | Novelis | Profit | Loss |