Aditya Birla group flagship, Hindalco Industries reported a year-on-year decline of 60 per cent in the consolidated net profit at Rs 387 crore for the quarter ended September 30 due to a loss of Rs 1,398 crore in the sale of Aleris’s Lewisport plant.
The company’s net profit from continuing operations stood at Rs 1,785 crore, up 83 per cent on a y-o-y basis. According to Bloomberg’s consensus estimates, the company was expected to report a net profit of nearly Rs 958 crore. Hindalco had reported a consolidated net loss of Rs 709 crore in the preceding June quarter, which was its highest quarterly loss. Consolidated revenue increased 5 per cent y-o-y to Rs 31,237 crore with Novelis, and the aluminium and copper business seeing a comeback in demand.
Satish Pai, managing director, Hindalco Industries said in a virtual meeting that the company had to sell the Lewisport plant at 50 per cent below the fair value as it was under pressure from the US Department of Justice. “We had to take a one-time loss on account of the sale of Lewisport, which was $170 million, and we are quite disappointed on what we think was not the fair treatment given to Hindalco and Novelis by the Department of Justice. We were hoping that we will get more time, but suddenly in October heading up to now they pushed very hard to close it. Honestly, we are very disappointed that we were not treated very fairly,” Pai said.
The company’s PAT declined during the second quarter due to a one-time impact of Rs 1,398 crore on account of the divestiture of the Lewisport unit of Aleris in the US, Hindalco Industries Ltd Managing Director Satish Pai told reporters at a virtual meeting. The company had posted a PAT of Rs 974 crore in the corresponding quarter of previous fiscal, Hindalco Industries Ltd said in a filing to the BSE. However, its revenue from operations during July-September quarter rose to Rs 31,237 crore from Rs 29,657 crore in the year-ago period.