The impact of rising aluminium prices is clearly visible in the fourth quarter results of Hindalco. The company saw a substantial 45.38 per cent jump in net sales but bottom line growth was held in check by rising input costs and interest charges.

For the quarter ended 31 March 2006, standalone profits increased 39.64 per cent to Rs626.3 crore from Rs448.5 crore for the previous year quarter. Total revenues increased 44.04 per cent to Rs3,731.7 crore from Rs2,590.7 crore

Operating profits increased 47.94 per cent as compared to the previous year quarter while operating margins increased modestly to 25.42 per cent from 24.98 per cent of net sales.

Cost of inputs increased substantially by 62.8 per cent while manufacturing costs were higher by 17.46 per cent. Staff costs increased 23.62 per cent and other expenses increased modestly by 1.76 per cent.

Interest costs went up by 64.21 per cent and depreciation charges increased 33.67 per cent. Other income declined marginally by less than a one per cent.

For the full year 2005-06, standalone net profits of Hindalco increased 24.53 per cent to Rs1,655.5 crore from Rs1,329.4 crore for the previous year. Standalone revenues increased 18.86 per cent to Rs11,640.4 crore from Rs9,793.3 crore.

Operating profits for the full year increased 23.66 per cent while operating margins improved marginally to 22.86 per cent from 22.12 per cent during the previous year.

Input costs increased 27.05 per cent during the year while increase in manufacturing costs was contained at 15.47 per cent. Staff costs went up by 12.14 per cent while other expenses declined very marginally by 0.5 per cent.

Interest expenses were higher by 12.48 per cent while depreciation charges jumped 32.47 per cent. Bottom line growth was further impacted by a 9.67 per cent fall in other income.

Consolidated net profits for the full year increased 22.95 per cent to Rs1,579.6 crore from Rs1,284.8 crore for the previous year. Consolidated revenues increased 18.62 per cent to Rs12,316.7 crore from Rs10,383.2 crore.