Aluminium maker Hindalco on Thursday reported a steep 95 per cent decline in its consolidated net profit at Rs 44.81 crore for the June quarter, mainly hit by impairment charges and write downs. The flagship firm of the Aditya Birla Group had clocked a net profit of Rs 854.21 crore in the year-ago period, it said in a regulatory filing.
Total consolidated income of the firm also declined, albeit by 4 per cent, to Rs 1,00,042.16 crore in April-June quarter this fiscal from Rs 1,04,281.10 crore during the same period of 2015-16. Total expenses of the firm were, however, lower at Rs 95,537.82 crore against Rs 98,927.09 crore in the year-ago quarter. "Exceptional items (Net) include impairment of fixed assets Rs 450.91 crore and write down in value of inventories Rs 125.62 crore of Birla Nifty Pty Ltd, a subsidiary of the company, as a result of potential decreases in Cu grade in the ore for remaining life of the mine, economically unviable of recovery of copper and change in macro-economic conditions," the firm said in the filing. Consequent to approval of Scheme of Amalgamation of Aditya Birla Chemicals (India) Ltd (ABCIL), a subsidiary of the company, with Grasim Industries Ltd by the respective High Courts, the amalgamation has since been approved by the Board of Grasim to make it effective from April 1, 2015, it added.
This year's result of ABCIL has not been included in consolidated results of the company. However, for the year ended March 31, 2015, group's share in ABCIL's net profit was Rs 20.38 crore and to the extent current year's consolidated profit is not comparable, it said. Hindalco also said that it has accepted Australian miner Metal X's improved takeover offer for its subsidiary Aditya Birla Minerals Ltd (ABML). Metal X offered 1 fully paid ordinary share in Metals X Ltd for 4.5 ABML shares and AUD (Australian dollar) 0.08 in cash for every ABML share held. Shares of the company fell by 1.66 per cent to Rs 133.55 at the BSE.