Hindalco Consolidated Profit Drops
Hindalco, the flagship metals company of the Aditya Birla, posted a March quarter net profit of ?668 crore, down 43% from ?1,178 crore a year ago A marginal drop in volumes in key product segments, lower realizations and a refinancing cost of ?568 crore for its US subsidiary, Novelis, put profits under pressure. Due to the pandemic and a slowing of the global economy, Hindalco saw a demand fall from auto, and building and construction sectors, while there was steady growth in food and pharmaceutical packaging segments. It expects normal demand patterns to resume in second half of FY21. It will also postpone some of its less critical capital expenditure plans.
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