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India's Hindalco beats Q2 earnings view on greater aluminium costs

India's Hindalco Industries , one of the nation's largest aluminium and copper manufacturers, posted a betterthanexpected secondquarter profit on Monday, helped by greater aluminium prices.

The company, owned by the Aditya Birla Group, stated its consolidated net earnings leapt 78% to 39.09 billion rupees ($ 463.3 million) for the 3 months ended Sept. 30, beating quotes.

Experts, usually, had anticipated a profit of 34.46 billion rupees, according to information put together by LSEG.

The demand for metals in the transportation, building, and packaging industries stayed strong this year, with prices of base metals like aluminium and copper increasing for the 2nd straight quarter in the July-September period.

The benchmark aluminium and copper prices on the London Metal Exchange increased 20% and 24%, respectively, from the 2nd quarter of in 2015.

Hindalco's revenue from operations rose 7.4% to 582.03 billion rupees, while total expenditures increased 3.3% to 531.21 billion rupees

The company tape-recorded a one-time expense of 5.14 billion rupees. throughout the quarter due to expenses tied to production disruption at the Switzerland-based plant of its system Novelis.

The U.S. IPO-bound aluminium recycler Novelis, which represent more than 60% of Hindalco's overall earnings, incurred a net money impact of $80 million due to the shutdown of its Switzerland plant from flooding in late June.

Income from Novelis increased 5.9%, while the copper section, the second-largest contributor to Hindalco's earnings, grew almost 5.4% throughout the quarter.

Shares of the company closed 0.75% higher ahead of the results. The stock got 9% in the quarter ended September, against the benchmark Nifty 50's 7.5% rise.

(source: Reuters)