Hindalco announces Q1 FY 08 results

Hindalco Industries Ltd., the flagship company of the Aditya Birla Group, today announced its unaudited financial results for the quarter ended 30 June 2007. Net sales and operating revenues have grown by 9 per cent to Rs. 4677.9 crore as compared to Rs. 4,273.7 crore in the corresponding period in FY 07. Despite an adverse business environment, net profit for the quarter is Rs. 602.9 crore vis-à-vis Rs. 601.5 crore in the corresponding period of previous year. Of the total revenues of Rs. 4677.9 crore, aluminium business contributed Rs. 1753.7 crore. Aluminium production in this quarter was the highest ever in a quarter. Aluminum metal sales volume rose by 7.6 per cent along with higher proportion of value-added products. The profit before interest and tax for aluminium business was lower by 10 per cent from Rs. 712.5 crore in the corresponding quarter in the earlier year to Rs. 642 crore, mainly on account of the sharp fall in alumina realisation, impact of custom duty cut on imports and above all, the sharp appreciation of the Rupee against USD. The Rupee has appreciated 9.1 per cent from Rs. 45.77 in Q1 FY 07 to Rs. 41.49 in the current quarter. On the positive side, the aluminium business benefited from higher LME prices, better operating efficiencies, enhanced volumes through better capacity utilisation and reduced input costs due to better procurement management as well as softening international prices.