MUMBAI (Commodity Online): India-based metal producer, Hindalco Industries Ltd (BOM: 500440) fell on the Bombay Stock Exchange (BSE) today as the company’s Q2 results give a pessimistic report.

Hindalco’s net profits declined by over 52% to Rs.344.05 crore, while revenues fell by over 13% to Rs.4892.5 crore for the second quarter of the current fiscal. Company stocks traded with heavy loss on the BSE today. Stocks traded at Rs.115 in the afternoon trading session losing by over 5% today.

Get Commodity Trading Tips at lowest rates

Company had announced its financial results on Saturday, 31 October 2009. The stock hit a high of Rs.119.80 and a low of Rs.112.40 so far during the day. The stock had outperformed the market in past one quarter, gaining 29.80% as against 3.30% rise in the Sensex.

India's largest aluminium maker by sales was hurt by a sharp year-on-year drop in metal prices on the London Metal Exchange (LME). The company, which has interests in aluminium and copper, fixes product prices based on the LME trends.

Company officials maintained that the prices for aluminium price fell 36% to Rs.89,000 per tonne in Q2 September 2009 from Rs.139,000 per tonne in Q2September 2008.

Hindalco saw a negative impact of Rs.560 crore on its operating profit, from the fall in aluminium prices, while the copper by-product price fall resulted in a loss of Rs.340 crore. The combined negative impact on the operating profit, from the two factors is Rs.900 crore.

Meanwhile, the board of Hindalco approved a proposal to raise Rs.2,900 crore through either qualified institutional placement or through global depository receipts (GDRs) or any other other security that will used to retire debt.