Birla’s aluminum giant posts fall in profit

Bloomberg

India’s Hindalco Industries Ltd posted a 33% decline in quarterly profit as a slide in metal prices and weak demand squeezed margins.
Group net income fell to 9.74 billion rupees ($136 million) during the three months ended in September from 14.5 billion rupees a year earlier, the aluminum and copper producer run by billionaire Kumar Mangalam Birla said. Sales fell 8.7% from a year earlier to 296.6 billion rupees.
Prices of aluminum and copper have slid this quarter and, coupled with slower growth in consumption in India, have weighed on earnings.
Domestic aluminum demand declined 6% from a year earlier to 967,000 tons, while copper consumption has started showing signs of moderation since September after a 10% increase during the quarter due to comparison with a low base, the company said.
Hindalco flagged risks from weakening global demand led by China, an escalation in the trade war between the US and the Asian country, rising imports of aluminum and copper in India and the impact of Brexit Hindalco’s US unit Novelis Inc reported a 6% increase in net income to $123 million.
Investors are watching for progress on the acquisition of US-based Aleris Corp by Novelis after it received conditional approval from the European Union for the deal. The company expects to close the transaction by January 21, 2020.