Hindalco Q1 profit drops 31% on high fuel, finance cost

World's largest aluminium rolling company Hindalco Industries missed street expectations with the first quarter net profit falling 30.9 percent year-on-year to INR 327.5 crore dented by higher power and fuel, finance, and raw material costs. Profit in the corresponding quarter of last fiscal was INR 474.1 crore.

The profit base was also high in Q1FY14 due to other income, which included non-recurring income of INR 203 crore. In the April-June quarter of current financial year, other income was INR 216.30 crore as against INR 427.94 crore in corresponding quarter of last fiscal.

Analysts had expected the Aditya Birla group company to report net profit of INR 327.5 crore on revenue of INR 8,100 crore for the quarter, according to CNBC-TV18 poll estimates.

Total income from operations jumped 37 percent to INR 7,996 crore in the quarter ended June 2014 from INR 5,838 crore in same quarter last year supported by both copper as well as aluminium businesses.

"Copper revenue grew by 37.3 percent on yearly basis to INR 4,990.3 crore with earnings before interest and tax (EBIT) rising 28.5 percent while aluminium business reported 36.2 percent growth at INR 3,011.30 crore with EBIT increasing nearly 4 times," said the company in its filing.

During the quarter, operating profit jumped 56.5 percent year-on-year to INR 748 crore and margin expanded by 120 basis points to 9.4 percent in the quarter gone by, which were lower than analysts' expectations of INR 861 crore and 10.6 percent, respectively.

Raw materials cost 71.7 5139.5 2993.5 power and fuel cost 41% 1136.8 806.2 and finance cost 127% 337.56 148.7

At 14:33 hours IST, the stock was quoting at INR 178.25, down INR 1.75, or 0.97 percent on the BSE.

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