* Q2 net profit 3.6 bln rupees vs 3.67 bln forecast
* Says high input costs to impact results in near future
* Hindalco shares down nearly 2 pct in firm Mumbai market
MUMBAI, Nov 6 India's Hindalco Industries
warned rising input costs may impact performance in
coming quarters after higher costs and lower production volumes
in its aluminium business resulted in a 29 percent fall in its
quarterly profit from domestic operations.
The aluminium and copper producer, part of the diversified
Aditya Birla Group, also warned it may face small delays in the
timelines for its upcoming projects. Hindalco is in the midst of
trebling aluminium capacity to 1.9 million tonnes by 2013 at a
cost of about $5 billion.
"The general slowdown coupled with the stubbornly high cost
of inputs may impact the business results in the near future,"
the company said in a statement.
It reported quarterly net profit of 3.6 billion rupees ($66
million) for its Indian operations, compared with net profit of
5.02 billion rupees a year earlier.
Analysts on average had expected profit of 3.67 billion
rupees for the July-September quarter, according to a Reuters
poll of brokerages.
Net sales fell about 2 percent to 62.2 billion rupees.
Hindalco's U.S.-based subsidiary, Novelis, which
is the world's largest producer of rolled aluminium products,
will detail its September quarter earnings later on Tuesday.
At 3:14 pm (0944 GMT), Hindalco shares were trading nearly 2
percent lower at 112.30 rupees, after the results. The shares,
valued by the market at $4.1 billion, are down 3 percent so far
this year compared to a 21 percent rise in the main stock index
Its aluminium business, which accounts for a third of
domestic revenues but normally boasts higher margins, reported a
60 percent slump in profits from a year ago, due to operational
disturbances at its two smelters, shortage of bauxite and higher
fuel and material costs, the company said.
The lower margin copper segment, which accounts for
two-thirds of the total revenue, saw profits rise 40 percent on
better volumes and a weaker rupee during the quarter.
Non-ferrous metal prices have remained stagnant globally
this year on demand uncertainties because of the euro zone debt
crisis and softening Chinese demand.
Copper futures on the London Metal exchange were
trading around $7,676 per tonne, nearly flat so far in 2012.
Aluminium futures, at $1,913 a tonne, are down about 5
percent this year.