The Hindu Business Line : Hindalco Q2 net up 90% on higher consumption

Rising domestic consumption of aluminium helped Hindalco Industries Ltd (HIL) log a 90.4 per cent increase in net profit for the quarter ended September 30, 2006. Net profit amounted to Rs 597.6 crore for the quarter up from Rs 313.80 crore posted during the corresponding period of the previous year.

Net income has gone up from Rs 2,659.3 crore to Rs 4,634.2 crore, marking a 74.26 per cent rise. Total expenditure has gone up 68 per cent during the same quarter.

Aluminium Consumption

Driven by strong prices, the aluminium segment marked a 31 per cent increase in revenues moving from Rs 1,412.60 crore to Rs 1,852 crore. Profit generated by the segment rose 54 per cent to Rs 671 crore, contributing to 75 per cent of the total quarterly earnings before interest and taxes.

"Domestic consumption of aluminium has grown from 12 per cent to 13 per cent over the past six months. This trend will continue in spite of the slowdown in the US in terms of aluminium consumption which is unlikely to affect HIL as about 80 per cent of our revenues (from aluminium business) comes from domestic consumption," said Mr D. Bhattacharya, Managing Director, HIL.

Buoyed by high prices, revenues from HIL's copper business rose 123 per cent in revenues to Rs 2,783 crore. The business contributed Rs 123.30 crore in earnings before interest and taxes. The company plans to invest about Rs 20,000 crore over the next few years in various expansion projects.

"Aditya Aluminium, a greenfield integrated 1.5 million TPA alumina refining and 3,25,000 TPA aluminium smelting project in Orissa is on course. The project, in principle, has received SEZ status approval for the smelter," said Mr Bhattacharya.

Shares of HIL ended at Rs 187.50, up by Rs 4.10 or 2.24 per cent, on the BSE on Wednesday.

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