Net profit of the flagship metal arm of Aditya Birla Group stood at Rs 359 crore in the same period of last fiscal. (Agencies)
However, revenue from operations increased 2.3 percent to Rs 6,305 crore in the second quarter ended September 30 from Rs 6,164 crore in the same period of last fiscal.
Operating profit rose by around 4.85 percent to Rs 540 crore as against Rs 515 crore reported in the same period of last financial year.
"There has been sound operational performance...net profit also remained steady," Managing Director of Hindalco D Bhattacharya told reporters here.
During the quarter under review, finance cost of the aluminium and copper producer shot up more than six times to Rs 183 crore from Rs 28 crore a year ago. However, finance cost stood at Rs 149 crore in the first quarter of this fiscal.
"It's not very significant increase if you compare it with last quarter," Hindalco Chief Financial Officer Praveen Maheshwari said.
On segment basis, aluminium sales grew by 11 percent to Rs 2,343 crore from Rs 2,105 crore reported in the same period of last year.
Hindalco said fall in aluminium prices in the London Metal Exchange (LME) was offset by the depreciating rupee during the reporting period.
The company also said the production ramp-up at its greenfield projects - Mahan smelter (MP) and Utkal refinery (Odisha) - are underway as planned.
"Mahan and Utkal are ramping up as planned...Aditya Aluminium is ready for operations, which can happen any time. We are just waiting for some approval after which it will take up...," Bhattacharya said.
He said the company doesn't expect aluminium prices at LME to go down further from their present level.
Copper sales stood at Rs 3,974 crore with an EBIT of Rs 239 crore during the second quarter.
According to the company, while TcRc (treatment charges and refining charges) was up during the quarter, realization from by-products came down in this period.
By the end of the second quarter, the company had a net debt to equity ratio of 0.35 percent with a gross long-term debt of around Rs 21,000 crore.
"With projects coming up, this ratio may slightly increase going ahead," Maheshwari said.
Net profit of the flagship metal arm of Aditya Birla Group stood at Rs 359 crore in the same period of last fiscal.