Mumbai, July 31: Hindalco Industries Ltd today reported a two per cent fall in net profit to Rs 193 crore for the first quarter ended June 30 this year. Declining margins in aluminium and lower sales of the copper division impacted the company’s bottomline. During the reporting quarter, Hindalco attained a turnover of Rs 1,155.5 crore, 3.5 per cent lower than Rs 1,197.9 crore reported in the comparable quarter last year.
Aluminium division’s contribution to the company’s quarterly turnover was Rs 644.4 crore, up 13.4 per cent over 586 crore in the corresponding quarter last year.
However, in this segment, though international commodity prices improved during the quarter, intense competition and higher proportion of exports capped realisations at the level of last year. Operating margins were lower at 38.1 per cent compared with over 39 per cent last year.
The sales of copper division were lower at Rs 491.1 crore as against Rs 611.9 crore, mainly on account of lower output as a consequence of a planned shutdown.
The quarterly results affected the company’s scrip movement on Dalal Street today. The share prices dropped by 1.14 per cent to Rs 818.55.
Hindalco stated that its brownfield expansion in aluminium is nearly completed and following this, smelter capacity is up to 3.45 lakh tonnes annually, alumina capacity at 6.60 lakh tonnes and captive power generation at 779 MW.
To leverage upon this expansion, the company plans to enhance the smelter capacity to 3.60 lakh tonnes and alumina refinery to 7 lakh tones through de-bottlenecking.
Essar Steel cashes in on boom
Riding on the back of a robust steel industry, Essar Steel has posted a profit of Rs 10.25 crore in the first quarter ended June 30, 2003, compared with a loss of Rs 138.22 crore in the corresponding previous quarter. Total income was up 48 per cent at Rs 784.84 crore against Rs 529.58 crore in the corresponding quarter last year. While operating profit was up by 125 per cent at Rs 179.78 crore (Rs 80.07 crore), finance cost (net) at Rs 67.87 crore was lower by 53 per cent compared with Rs 143.55 crore in the same period last year.