Rising input costs halved Hindalcos profits in the twelve months to March 31 as higher prices of raw materials and fuel weighed on the aluminium maker. The groups consolidated profit after tax,which does not account for the profit or loss of Hindalcos subsidiary Idea Cellular,fell 51.1 per cent from the previous year to Rs 2,879 crore. However,turnover increased by 19 per cent to end the year at Rs 72,078 crore. Earnings per share fell 42.1 per cent to Rs 12.84. Hindalco chairman KM Birla confirmed today that the company planned to invest $6.5 billion (Rs 32,155 crore) over the next three years,with three projects worth $5 billion (Rs 24,735 crore) in Orissa,MP and Jharkhand expected to be completed by early 2013. The group has obtained financing for a Rs 4,096 crore refinery in Rayagadh,Orissa,and Rs 7,875 crore in debt for an aluminium smelter in Mahan,Madhya Pradesh. It has yet to receive loans for its Aditya Aluminium project in Lapang,Orissa. However,Birla admitted that input cost pressures,lower treatment and refining charges and one-timers associated with the Hirakud power outage have been some of the constraints faced in attaining even higher levels of performance. Hindalcos total costs rose 22.5 per cent to a consolidated Rs 64,447 crore,with its spending on raw materials increasing by 24.4 per cent and costs of power and fuel rising 10.2 per cent. The group said Novelis,an acquired subsidiary,had finished recapitalising its balance sheet with a $1.5 billion (Rs 7,421 crore) secured-term credit facility. The Canadian aluminium roller returned to profits in the financial year,earning the group Rs 728 crore after tax.
