New Delhi: Aluminium maker Hindalco Industries on Thursday reported 36 percent fall in standalone net profit to Rs 160 crore for the quarter ended March 31, mainly on account of Rs 146 crore liability towards Renewable Power Obligations (RPO).
The Aditya Birla Group flagship had posted net profit of Rs 248 crore in the January-March period of the previous fiscal, 2013-14, it said in a BSE filing.
Standalone net sales of Hindalco rose by 10 percent to Rs 9,219 crore in the January-March quarter, from Rs 8,360 crore in the same quarter of 2013-14, it added.
Expenses rose to Rs 8,761 as against Rs 7,835 crore during the year-ago period.
Hindalco said: "Net profit after tax at Rs 160 crore in lower mainly on account of an exceptional item of Rs 146 crore liability provided towards RPO."
On a quarter-on-quarter basis, net sales rose by 9 percent helped by higher aluminium and copper sales volume, it added.
For the entire 2014-15 fiscal, Hindalco's standalone net profit fell by 35 percent to Rs 925 crore from Rs 1,413 crore in 2013-14. Net sales for the fiscal rose by 24 percent to Rs 34,094 crore, as against Rs 27,573 crore.
In a separate filing, Hindalco Industries said its Board has recommended a dividend payment of Re 1 per share for the 2014-15 fiscal.
Hindalco stock closed 1.57 percent down at Rs 132 per share on the BSE.
Ramping up of the capacity at Mahaan Aluminium and Aditya Aliminium projects led to production of the metal rising to 242 kilotonnes in January-March quarter, from 217 kilotonnes in the previous quarter of last fiscal, Hindalco said.
Copper cathode production rose to 100 kilotonnes in Q4 2014-15, from 94 kilotonnes in Q3 2014-15, it added.
On a consolidated basis, Hindalco's revenue rose to Rs 1.04 lakh crore in 2014-15, from Rs 87,695 crore in 2013-14.
Net profit was lower at Rs 854 crore on account of higher interest cost and exceptional items.
"The exceptional item mainly relates to a sinkhole incident at one of the subsidiary companies in Australia and change in macro-economic conditions. This has resulted in the impairment of fixed assets, write down in value of inventories and expenses incurred towards restoration of operations," it said.
Revenue from its wholly-owned subsidiary Novelis Inc rose by 14 percent to - USD 11.1 billion - in 2015 fiscal compared to USD 9.8 billion in fiscal 2014 driven by record shipments of rolled aluminium products of 3,050 kilotonnes. Higher average metal prices also contributed to the increase in revenues.
Its net income rose by 4 percent to?USD 161 million?in fiscal 2015 compared to the year-ago period.
Utkal Alumina International Ltd (UAIL) produced 1 million tonnes of Alumina in 2014-15 fiscal against 0.2 million tonnes in FY 2013-14. Of this, 288 kilotonnes was exported, the balance was supplied to smelters at Hindalco.
UAIL reported a net loss of Rs 496 crore after interest charge of Rs 519 crore and depreciation of Rs 238 crore.
Aditya Birla Minerals Ltd (ABML), in which Hindalco owns 51 percent stake, reported a net loss of Australian Dollar (AUD) 219.7 million in FY 2014-15 compared to AUD 0.2 million in FY 2013-14.
"The sinkhole incident in March 2014 resulted in a cost of approximately AUD 22 million during the suspension period. Its Copper production volume after recommencement of operations was lower and impairment charges of AUD 219 million had an adverse impact on the company's financials in FY 2014-15," Hindalco added.
ABML's Nifty Copper Sulphide Concentrator produced 12,698 tonnes of copper in concentrate as compared to 44,071 metric tonnes of contained copper in the previous year, a decrease of 71 percent.
Management is now focused on implementation of various cost optimisation initiatives and rationalisation of capex spending, it said.
"ABML has resolved to undertake a review of the company's strategic options with a view to maximise value for all shareholders (Strategic Review). The Strategic Review will consider corporate and operational strategies and include a review of ownership options available to the firm," it added.
Hindalco's Board has recommended a dividend of Rs 1 per share aggregating to Rs 246 crore (including dividend distribution tax of Rs 40 crore) for 2014-15 fiscal.
