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Metals producer Hindalco Industries today reported a 0.5 per cent decline in standalone net profit to Rs 357.11 crore for the July-September quarter as finance costs increased over 6.5 times.
The flagship firm of the Aditya Birla group had reported a profit of Rs 358.88 crore in the corresponding quarter of the previous financial year.
Net sales rose 2.14 per cent to Rs 6,245.56 crore, Hindalco Industries said in a filing to the BSE.
Revenue from the copper business fell 2.25 per cent to Rs 3,974 crore, while sales in the aluminium segment increased 11.30 per cent to Rs 2,342.66 crore.
Finance costs increased to Rs 183.17 crore from Rs 27.86 crore a year earlier. The company said in a separate statement that "finance costs were higher, given higher average borrowing."
Hindalco Industries' other income more than doubled to Rs 279.82 crore and includes Rs 61 crore of non-recurring income and Rs 100 crore of dividend from subsidiaries.
The company said the long spell of subdued prices at the London Metals Exchange (LME) has adversely affected the global aluminium industry and its margins and production levels significantly.
However, the copper business is expected to have a stable outlook despite a sharp drop in by-product realisation.
Hindalco Industries said it issued 15 crore shares on a preferential basis on September 20 to its promoters at Rs 144.35 per share against warrants.
It also issued a Rs 1,000 crore corporate guarantee in support to Utkal Alumina International Ltd, a wholly owned subsidiary, to avail of a term loan facility to refinance its existing expensive term loan.
Hindalco Industries shares traded at Rs 111.05 on the BSE at 1450 hours, down 0.36 per cent.