Hindalco’s net income triples as company seeks to raise funds

Business Sunday 13/November/2016 13:29 PM
By: Times News Service
Hindalco’s net income triples as company seeks to raise funds

Mumbai: India’s biggest aluminium producer Hindalco Industries reported quarterly profit that more than tripled on cost-cutting and a one-time gain, and said it was seeking to raise funds.
Net income climbed to Rs4.4 billion ($65 million) in the three months through September from Rs1.2 billion a year earlier, the company said on Saturday. That compares with the Rs3.3 billion average of 19 analysts’ estimates compiled by Bloomberg. The company’s board approved raising up to Rs50 billion and has set up a committee to decide on the type of offering, including sale of shares or foreign currency convertible bonds, to be made.
The flagship company of Indian billionaire Kumar Mangalam Birla’s Aditya Birla Group is the best performer on the NSE Nifty 50 Index this year, boosted by higher prices for aluminum and copper and lower costs. Industrial metals are poised to benefit from President-elect Donald Trump’s pledge to boost infrastructure spending, according to Bloomberg Intelligence.
"Operational performance was supported by benign energy prices and some recovery in the aluminium prices,” Hindalco said. "The macroeconomic headwinds still persist and the uncertain global macro factors pose several challenges.”
Revenue was little changed at Rs95.6 billion, while total costs fell 5.3 per cent to Rs87.6 billion. The company had a one-time gain of Rs848.9 million in the quarter.
Hindalco’s shares, which have more than doubled this year, declined 2 per cent to Rs172.30 in Mumbai on Friday. The benchmark S&P BSE Sensex has climbed 2.7 per cent this year.
The company will focus on reducing debt over the next three years as it targets record output of 1.25 million metric tonnes of aluminium in the 12 months to March, Managing Director Satish Pai said in July.