Indian aluminium producer Hindalco misses Q2 profit view on lower prices, demand
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India's Hindalco Industries, one of the country's largest aluminium and copper producers, reported on Friday a smaller-than-expected quarterly profit, dented by lacklustre aluminium prices and demand.
The Aditya Birla Group-owned company, which operates in 10 countries, said its consolidated net profit fell to 21.96 billion rupees ($263.33 million) in the three-month period ended Sept. 30, from 22.05 billion rupees a year earlier.
Analysts on an average expected a second-quarter profit of 24.86 billion rupees.
Average aluminium and zinc prices slumped in the reported quarter, with the London Metal Exchange's aluminium rates dropping 5.1% sequentially and alumina sliding 4.1%, analysts said.
Factory activity in September expanded in India - the world's second-biggest aluminium producer - at the slowest pace in five months, a private survey showed.
Novelis, Hindalco's U.S. unit and the world's largest aluminium recycler with production and recycling operations across Europe, recorded an 11.4% plunge in revenue, pulling down total sales 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 around 30% to 124.41 billion rupees due to higher metal shipments.
Shares of Hindalco, which houses global brands such as Eternia Windows, Maxloader and Everlast Roofings, traded flat after the results. The stock gained 17% during the quarter, outpacing a 2.3% rise in the benchmark Nifty 50 Index.
($1 = 83.3929 Indian rupees)
