Hindalco's first quarter net up 11%

Hindalco's first quarter net up 11%Aditya Birla Group's Hindalco Industries has reported an 11 per cent jump in its net profit. The company posted a profit of Rs. 534 crore during the quarter ending June 30 as against Rs. 481 crore during the same period last year.

The net sales for the first quarter of FY 2011, was Rs. 5,178 crore which is 33 per cent higher than the same quarter of the last fiscal.

Increase on both the fronts was the result of higher volumes coupled with better product mix as well as geographic mix. Realization during the same also increased pushing up the financial.

The low cost advantage of that the company was able to generate by integrating its captive coal units for power in its Hirakud smelter also proved to be advantageous. But spiralling cost of crude as well as purchased coal for Renukoot and plummeting Copper TcRc pulled down the effect.

Aluminum is main business of the group and out of the total revenue of Rs 5,178 crore, this business contributed Rs. 1,867 crore with an EBIT of Rs. 552 crore. The sales were pushed with better mix of material and price.