Hindalco Quarterly Net Falls on Lower Aluminum, Copper Prices
Net income, on a standalone basis and excluding unit Novelis Inc., dropped to 4.82 billion rupees ($86 million), or 2.52 rupees a share, in the three months ended March 31 from 6.4 billion rupees, or 3.34 rupees, a year earlier, the Mumbai-based company said in a stock exchange filing. The median estimate of 25 analysts surveyed by Bloomberg was 3.87 billion rupees. Sales fell 8.5 percent to 69.2 billion rupees.
The price of aluminum, the lightweight metal used to make aircraft and beverage cans, averaged 8 percent lower in the period, while copper fell 4 percent on the London Metal Exchange.
Total expenses fell 6 percent to 65.2 billion rupees, with raw material costs declining 10 percent to 45.2 billion rupees.
Hindalco shares fell 0.5 percent to 110.05 rupees at the close in Mumbai. The earnings were announced after trading ended. The stock has fallen 16 percent this year, compared with a 3.8 percent gain in the key S&P BSE Sensex.
The company’s Atlanta-based unit Novelis, the world’s biggest supplier of aluminum to carmakers, posted a profit of $59 million in the quarter ended March 31, compared with a loss in the year ago period, on better demand and cost control, it said in an investors presentation on May 14.
To contact the reporter on this story: Abhishek Shanker in Mumbai at email@example.com
To contact the editor responsible for this story: Jason Rogers at firstname.lastname@example.org