BENGALURU, Aug 13 (Reuters) - India's Hindalco
on Tuesday reported first-quarter profit below estimates, hurt
by a jump in expenses tied to disruptions at its Novelis unit's
Switzerland plant.
Consolidated net profit for the Aditya Birla Group-owned
company surged 25% to 30.74 billion rupees (about $366 million).
Analysts, on average, expected a profit of 36.71 billion rupees,
according to LSEG data.
Novelis, which accounts for more than 60% of the
firm's overall revenue, incurred a net cash impact of $80
million from the shutdown of its Switzerland-based plant, it
said in a statement. Hindalco's total expenses grew over 4% to
522.61 billion rupees.
However, its bottom line still grew on strong sales and
higher product prices from Novelis and its second-biggest
business, copper.
During the quarter, global prices of base metals including
aluminium and copper saw a sharp uptick amid supply shortages
and rising demand, analysts said.
For the quarter, benchmark aluminium and copper
prices on the London Metal Exchange rose 8% and 8.3%,
respectively.
Higher commodity prices tend to raise selling prices and
margins for miners.
Peers Vedanta and NALCO also reported
higher profit, benefiting from a rise in prices.
Pre-tax profit at the IPO-bound Novelis jumped 21% to 41.7
billion rupees, buoyed by steady demand in its beverage
packaging shipments and higher prices, it said in a statement.
Hindalco's revenue from operations grew nearly 8% to 570.13
billion rupees, while its copper business reported a 16% growth
in revenue.
($1 = 83.9370 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Mrigank
Dhaniwala and Devika Syamnath)