Aluminum maker, Hindalco Industries' full-year (April-March) consolidated net profit declined 37% to Rs 2,456 crore, despite strong growth in revenues. Higher capital expenditure, refinance existing debts, increased input cost and hardening interest rates squeezed the margins.
However, net revenues in the quarter under review rose 19% year-on-year to Rs 72,078 crore driven by strong volumes from its aluminum and copper business, improved product mix and higher commodity prices, the company said in a press release to the stock exchanges Monday.
Interest cost rose mainly due to one-time debt issuance cost related to the refinancing of USD 4.8 billion at its US unit, Novelis, in December and consequent higher interest in fourth-quarter of 2010-11, the company said.
Hindalco also plans to invest over USD 6.5 billion in India and overseas in the next three years to expand its aluminum rolling and recycling operations in South Korea and to set up three new aluminum smelters and two alumina refineries in Odisha, Madhya Pradesh and Jharkhand.
Following the completion of all these projects, Hindalco sees a quantum growth leap in its earnings, the company said in the press release.
The Aluminum makers' earning before depreciation, interest and tax, or EBITDA declined to Rs 8,433 crore from Rs 10,069 crore a year ago mainly because of inclusion of Rs 2,736 crore of unrealized gains from derivatives in FY10, while it made a loss of Rs 291 crore in FY11.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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