Group net profit for the year ended March fell to Rs2456 crore while revenues, including that of subsidiary Novelis Inc , rose 19% to Rs 72078 crore on strong volumes, an improved product mix and firm aluminium and copper prices.

"We are working on a strategy that aims to create a complementary business model. As we grow our upstream business by raising primary metal capacity, we would be exposed to volatility in LME prices. However, growth in our value added products business will create a natural hedge against any market volatility," Hindalco managing director D Bhattacharya said.

Hindalco's earning before EBITDA declined to Rs 8433 crore from Rs 10069 crore a year ago. Its net profit of Rs 3925 crore last fiscal had included a derivative gain of Rs 2736 crore while it recorded a loss of Rs 291 crore on the same account in FY11.

"All declines are entirely on account of one-timers like unrealised derivative gains and losses. The swing...is not operational," Bhattacharya said.