You are here

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

[MUMBAI] India's biggest aluminum producer Hindalco Industries Ltd 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 4.4 billion rupees (S$92.1 million) in the three months through September from 1.2 billion rupees a year earlier, the company said Saturday. That compares with the 3.3 billion rupee average of 19 analysts' estimates compiled by Bloomberg. The company's board approved raising up to 50 billion rupees 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 aluminum prices," Hindalco said. "The macroeconomic headwinds still persist and the uncertain global macro factors pose several challenges." Revenue was little changed at 95.6 billion rupees, while total costs fell 5.3 per cent to 87.6 billion rupees. The company had a one-time gain of 848.9 million rupees in the quarter.

Hindalco's shares, which have more than doubled this year, declined 2 percent to 172.30 rupees in Mumbai on Friday. The benchmark S&P BSE Sensex has climbed 2.7 percent this year.

Your feedback is important to us

Tell us what you think. Email us at

The company will focus on reducing debt over the next three years as it targets record output of 1.25 million metric tons of aluminum in the 12 months to March, Managing Director Satish Pai said in July.


BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to