Hindalco Industries Ltd, a part of the Aditya Birla Group, reported a higher net profit of Rs 847 crore on a standalone basis for the second quarter.
According to the regulatory filing, the company achieved operational revenue of Rs 20,676 crore for the quarter ending September 30, 2023, compared to Rs 18,382 crore in Q2FY23.
The after-tax profit stood at Rs 847 crore, a significant increase from Rs 548 crore in the same quarter the previous year.
During this quarter, Hindalco signed a Binding Memorandum of Understanding (MoU) for the sale of land in Kalwa, Maharashtra, at a consideration of Rs 595 crore.
The payment will be received in multiple tranches over time, along with 1.5 per cent of the Sales Revenue from the project, as defined in the MoU.
The company also recognized capital losses of Rs 129 crore in the quarter, bringing forward losses that were not previously recognized as Deferred Tax Assets.
This decision was made based on the reasonable certainty of realizing losses against future capital gains resulting from a transaction.
In addition, Hindalco prepaid two term loans during the second quarter of FY24, amounting to Rs 1,870 crore and Rs 250 crore. Originally scheduled for repayment between June 2024 to September 2030 and October 2023 to January 2032, respectively, these early repayments showcase the company's financial strategy.
(With Agency Inputs)
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