New Delhi: India’s largest aluminium producer Hindalco Industries Ltd on Saturday reported a 8% rise in its net profit at Rs460 crore for the third quarter of the financial year ended 31 December, 2010 as it earned better margins from higher aluminium prices.
The company lost Rs200 crore during the reported quarter after two of its aluminium smelters had to be shut down for six months from July to December due to heavy rains.
“The loss was an one timer due to the accident in the Hirakud smelter in Orissa”, said Debu Bhattacharya, Hindalco Industries Ltd’s managing director and added that the profits will normalize in the fourth quarter.
Hindalco’s profit from copper went down by 10.08% to Rs143 crore as it received lower treating and refining charges or (TcRc), rupee appreciation and higher power costs.
Bhattacharya expects some pressure on the aluminum and alumina prices in future but expects higher TcRc charges. “The consumption of copper has been lower with people putting their capital expenditure plans on hold and switching to aluminum, Bhattacharya said.
The company, which posted a 12% rise in revenues to Rs5,975 crore in the December quarter, re-financed $1.7 billion loan that it borrowed to buy American aluminum can maker Novelis Inc, which has turned around after three years.