India's Hindalco posts 45% fall in quarterly profit on higher costs

Feb 12 (Reuters) - India's Hindalco Industries HALC.NS posted a 45% fall in its third-quarter profit on Thursday despite firmer aluminium and copper prices, weighed down by expenses linked to fire-related disruptions at its U.S. unit Novelis.

The Aditya Birla Group-owned metals producer reported a consolidated net profit of 20.49 billion rupees ($226.14 million) for the three months ended December 31, compared with 37.35 billion rupees a year earlier.

The decline was largely due to 26.10 billion rupees of exceptional expenses tied to a plant disruption in Oswego, New York.

Its U.S.-based subsidiary Novelis, which supplies rolled aluminium to beverage can makers and automakers, was impacted by a fire at its New York plant last year.

The results come a day after Hindalco said the fire at Novelis would hit its 2026 cash flow by $1.3 billion to $1.6 billion, with the company targeting a restart towards the end of the second quarter.

The company's consolidated revenue rose 14% to 665.21 billion rupees, supported by a strong performance in the India business, higher copper sales and growth in value-added aluminium products.

Global aluminium prices remained supported during the quarter amid supply constraints and steady demand from the automotive, packaging and infrastructure sectors.

Domestic demand for non-ferrous metals was also aided by government-led infrastructure spending and manufacturing growth.

In India, Hindalco's copper segment saw a 33% rise in revenue, while its aluminium upstream and downstream businesses grew 6% and 22%, respectively.

($1 = 90.6060 Indian rupees)