Hindalco Industries, one of the country’s largest aluminum and copper producers, reported lower-than-expected quarterly profit on Friday, taking a hit from subdued aluminum prices and demand.
The company, which is owned by the Aditya Birla Group and operates in 10 countries, said consolidated net profit fell to 21.96 billion rupees ($263.33 million) in the three-month period ended September 30, from 22 .05 billion rupees a year earlier.
Analysts on average expected a second-quarter profit of 24.86 billion rupees.
Average aluminum and zinc prices fell in the reported quarter, with London Metal Exchange aluminum prices down 5.1% sequentially and alumina down 4.1%, analysts said.
In September, factory activity in India – the world’s second-largest aluminum producer – increased at the slowest pace in five months, a private survey showed.
Novelis, Hindalco’s US operation and the world’s largest aluminum recycler with production and recycling operations across Europe, posted an 11.4% decline in sales, pushing total sales down nearly 4% to 541.69 billion rupees.
Hindalco said in a statement that revenue from its copper business, the company’s second-largest segment, rose about 30% to 124.41 billion rupees on higher metal shipments.
Shares of Hindalco, which has global brands such as Eternia Windows, Maxloader and Everlast Roofings, traded close after the results. The stock rose 17% during the quarter, surpassing a 2.3% gain in the benchmark Nifty 50 Index.
($1 = 83.3929 Indian Rupees)
Tags: Indian aluminum producer Hindalco misses profit forecast due prices demand November
