 "Hindalco net profit falls 67% in June quarter")
Hindalco Industries reported a lower-than-expected net profit at Rs 107 crore in the June quarter on a standalone basis, down more than half of the profit recorded in the corresponding period last year. The Bloomberg consensus estimate for profit stood at Rs 163.7 crore while the actual came 34.6 per cent lower than estimates.
Even as operating earnings before interest, taxes, depreciation and amortisation at Rs 877 crore came better than estimates of Rs 718 crore, the increased depreciation and more than doubled finance costs hit profits. Finance costs surged 78.3 per cent to Rs 601 crore in the period under review from Rs 337 crore in the corresponding period last year.
Finance cost and depreciation was higher given the additional capitalisation at both the new smelter complexes—Aditya aluminium smelter and Mahan aluminium smelter, Hindalco Industries said.
Lower-than-the-expected Rs 8,968.5 crore by Bloomberg, the net sales of the Aditya Birla Group company stood at Rs 8,573 crore in the period under review. These were, however, up 7.2 per cent year-on-year. Both aluminium and copper segments saw higher volumes but with aluminium prices and premiums declining, the copper business’ contribution increased to 54 per cent of gross revenues.
Overall, revenues were up year-on-year, on the back of higher volumes despite lower commodity prices.
Even as operating earnings before interest, taxes, depreciation and amortisation at Rs 877 crore came better than estimates of Rs 718 crore, the increased depreciation and more than doubled finance costs hit profits. Finance costs surged 78.3 per cent to Rs 601 crore in the period under review from Rs 337 crore in the corresponding period last year.
Finance cost and depreciation was higher given the additional capitalisation at both the new smelter complexes—Aditya aluminium smelter and Mahan aluminium smelter, Hindalco Industries said.
Lower-than-the-expected Rs 8,968.5 crore by Bloomberg, the net sales of the Aditya Birla Group company stood at Rs 8,573 crore in the period under review. These were, however, up 7.2 per cent year-on-year. Both aluminium and copper segments saw higher volumes but with aluminium prices and premiums declining, the copper business’ contribution increased to 54 per cent of gross revenues.
Overall, revenues were up year-on-year, on the back of higher volumes despite lower commodity prices.