HINDALCO: Highest Ever Aluminium Metal Production

Hindalco, the Aditya Birla Group flagship Company today announced its unaudited results for the fourth quarter and year ended March 31, 2012.

Standalone Revenues for the year crossed the Rs. 25,000 crore mark and stood at Rs. 26,597 crore driven by higher volume and realisation

Profit before Interest and Depreciation was Rs. 3,721 crore, an increase of over 6% compared to FY11, on account of higher volumes in Aluminium Business and better TcRc in Copper Business, along with improved efficiencies and higher other income.

In the Aluminium Business, there has been significant increase in costs, especially in case of coal (by 20%), furnace oil (by 40%), caustic soda (by 25%) and carbon (30%). The cost surge was partly offset by asset-sweating and improving operational efficiencies, coupled with better realisation. The Profit before Interest and Taxes stood at Rs. 1,822 crore for FY12 compared to Rs. 2,004 crore in FY11. The capital employed for Aluminium Business at Rs. 23,912 crore as on March 31, 2012 includes Rs. 16,211 crore on Mahan, Hirakud Rolled and Aditya Aluminium Projects, which are at various stages of completion. The balance largely pertains to the existing Aluminium operations.

In the Copper Business, revenues stood at Rs. 17,575 crore compared to Rs. 15,902 crore in FY11, due to higher LME and by-product revenue. Profit before interest and taxes increased by 33% to Rs. 802 crore, due to improved efficiencies, higher TcRc and by-product credit, notwithstanding higher energy costs and a planned shutdown in FY12.

Results for Q4FY12

Net sales and operating revenues at Rs. 7,647 crore in Q4FY12 are up 12% over Q4FY11, driven by higher volume despite lower realisation. Profit before Interest, Depreciation and Taxes is maintained at Q4FY11 levels. Net profit for the quarter is marginally lower than that of the corresponding quarter in the previous year due to lower provisioning for taxation in Q4FY11 on account of lower effective tax and tax write-back.

Of the total quarterly revenues of Rs.7,647 crore, Aluminium Business contributed Rs.2,499 crore, with Profit Before Interest and Taxes at Rs. 484 crore vis-à-vis Rs. 562 crore in Q4FY11. The results would have been better, but for increased input costs and lower realisation on the back of lower Aluminium LME.

In the Copper Business, revenues for the quarter are higher at Rs.5,154 crore, from Rs 4,637 crore in Q4FY11, consequent to better mix and by-product sales. Profit before Interest and Taxes are up 43% to Rs. 293 crore from Rs. 206 crore due to higher production, improved efficiencies, higher Treatment and Refining Charges (TcRc) and by-product credit, offset to some extent by higher energy costs.