Hindalco net rises 50% on tax refund

Hindalco net rises 50% on tax refund
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First Published: Wed, Apr 30 2008. 10 35 PM IST
Updated: Wed, Apr 30 2008. 10 35 PM IST
New Delhi: India’s biggest aluminum producer, Hindalco Industries Ltd, said fourth-quarter profit rose 50% as a one-time tax refund more than offset a decline in smelting fees.
the company said in a statement. Profit included Rs541 crore in tax write-backs for previous years.
Cuts in the fees smelters, including Hindalco, charge mining companies to process ore into metal are curbing earnings at metal processors across Asia. Hindalco accepted a 25% reduction in the fee it charges BHP Billiton Ltd to process copper, its second biggest product. “Rupee appreciation, fall in refining charges and unrelenting cost push squeezed margins at both ends,” Hindalco said.
The 10% gain in the rupee against the dollar over a year ago is also limiting earnings at Indian producers. National Aluminium Co. reported a 31% decline in net income on Tuesday on lower aluminum prices and rupee gains. The rupee averaged 39.77 against the dollar in the quarter, compared with 44.15 the year before.
Hindalco’s sales rose 5.7% to Rs51.5 billion. Bloomberg
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First Published: Wed, Apr 30 2008. 10 35 PM IST
More Topics: Hindalco | Results | Net | Tax Refund | Corporate News |