NEW DELHI Nov 12 India's Hindalco Industries
Ltd, an aluminium and copper producer being
investigated for a coal block jointly allocated to it, reported
a smaller-than-expected quarterly profit as prices fell due to
production outpacing demand.
Three-month aluminium prices on the London Metal
Exchange averaged 5 percent lower in the July-September quarter
from a year earlier, while copper prices averaged about
8 percent lower.
"The long spell of subdued LME has adversely affected the
global aluminium industry and its margins and production levels
significantly," Hindalco, which is India's No. 2 aluminium and
copper producer, said in a statement.
Second-quarter net profit fell marginally to 3.57 billion
rupees ($56.4 million) from 3.59 billion rupees a year earlier.
Revenue rose 2 percent to 63.05 billion rupees.
Analysts were expecting a profit of 3.83 billion rupees on
revenue of 67.64 billion rupees, according to Thomson Reuters
Hindalco unit Novelis Corp, the world's top maker
of rolled aluminium sheets, said on Monday net income for the
April-September period sank 74 percent due to overcapacity in
the North American beverage can market.
Hindalco and its chairman, billionaire Kumar Mangalam Birla,
are under the scrutiny of India's federal police as part of a
probe to find out if there were irregularities in awarding coal
blocks to various companies over the past two decades. The
company has denied any wrongdoing.
The company's shares, which have lost a fifth of their value
this year, fell slightly after the results. They were up more
than 2 percent earlier on Tuesday.
($1 = 63.2750 Indian rupees)
(Reporting by Krishna N Das; Editing by Prateek Chatterjee)