Mumbai: Aluminium major Hindalco Industries Ltd on Wednesday reported a 24.98% drop in its standalone quarterly profit during the recently concluded March quarter to Rs376.97 crore.
The leading aluminium and copper producer had clocked a standalone profit of Rs502.52 crore during the last quarter of 2016-17.
The company’s total standalone income dipped marginally to Rs11,886.02 crore in the January-March quarter of 2017-18 fiscal, compared to Rs11,969.66 crore in the same period in 2016-17, it said in a regulatory filing.
Its total expenses in the March quarter was almost stagnant at Rs11,329.68 crore.
On a consolidated basis, the company reported a profit of Rs6,082.87 crore during FY18, as compared to Rs1,882.30 crore reported by the company during the previous year.
The company reported a consolidated yearly revenue of Rs116,913.16 crore during FY18 up from Rs103,742.45 crore the previous year.
The costs during Q4 hit the peak and were about 6% more than Q3 costs, said Hindalco’s managing director Satish Pai.
“With the costs flatting out in April-May, we could see a fall through in aluminium prices," Pai said, adding that the company has secured 60% of its alumina and coal requirements for the year and expects input costs to further go down as the year progresses.
Hindalco, which has earmarked its capex at Rs1,600 crore for FY18, will expand its downstream operations.
“It will take me four-five years to double the existing downstream capacity for which we are making investments," Pai said, adding that the company is expected to add at least 12% more value added products like foil and rolled products to its portfolio in the coming years.
The company, which produces about 450 million tonnes of value-added products and wire rods, plans to increase this figure to more than a million tonnes over the next five years.
Pai said that both Hindalco and Novelis are looking at their next phase of growth, which is largely likely to be organic.
“We will certainly look at inorganic opportunities if they come up," Pai added.
Pai said that India needs to be wary of dumping of Chinese and Russian metals that are looking at markets to dump their products after getting various concessions from their respective governments thus making their prices very competitive or cheaper than products manufactured by local units.
“We have made a representation to the government and have got a favourable response from them," Pai said.