Hindalco Industries fell 1.83% to INR 120.50 at 11:52 IST on BSE extending 8.73% losses in preceding 5 trading sessions triggered by weak outlook issued by the company at the time of announcing Q2 results on November 10th 2011.

Hindalco Industries said at the time of announcement of Q2 September 2011 results on November 10th 2011 that the second half of FY 2012 will be difficult due to global uncertainties, falling LME prices and persisting cost pressures. The intensity of resource challenge which accentuated in the first half of FY 2012 due to monsoon related issues is expected to moderate. Overall, the second half of FY 2012 is expected to be challenging in terms of cost pressure, domestic demand and realizations.

The company said that various initiatives of asset sweating and cost optimization are expected to cushion the results. With some of the projects slated to go on stream in second half of FY 2012, the start up, quick ramp up and speedy stabilization of production are going to be key focus areas for the company.

Hindalco Industries' net profit rose 15.8% to INR 502.52 crore on 7.2% growth in net sales to INR 6220.47 crore in Q2 September 2011 over Q2 September 2010.

(Sourced from www.indiainfoline.com)