Hindalco Industries posts 31% decline in Q1 net

Hindalco Industries, the Aditya Birla Group Company, has announced its unaudited results for the quarter ended June 30, 2009.

The company has posted a net profit of Rs 480.56 crore for the quarter ended June 30, 2009 against net profit of Rs 696.76 crore for the quarter ended June 30, 2008, a fall of 31.03%.Total Income for the quarter has gone down by 18.25% to Rs 3974.81 crore from Rs 4862.19 crore in the year ago period.

The figures of the current quarter are not comparable with those of the corresponding quarter of the previous year as the company has decided for early adoption of Accounting Standard (AS) 30 on financial instruments recognition and measurement, relating to derivative accounting, from April 1, 2009.

Accordingly net loss arising on fair valuation of outstanding derivatives as on April 1, 2009 has been adjusted against general reserve following transitional provisions.

Accounting for all derivatives during this quarter have been done as prescribed under the accounting standard and accordingly, net gain / (loss) of Rs 9 crore, Rs (184) crore and Rs 318 crore have been included under net sales, consumption of raw materials and other expenditure, respectively with consequential impact on profit before tax (PBT) for this quarter.