Hindalco reports higher-than-expected Q3 PAT at Rs 713 crore, up 47% yoy

Hindalco delivered the quarterly performance across all its businesses despite challenging environment and rising inputs cost

Hindalco Industries today reported a net profit of Rs 713 crore (including Utkal Alumina) for December quarter, up 47 per cent from same period last year on the back of higher revenues and lower finance cost even as input costs of coal furnace oil went up during the same period.

The company’s revenue in the period under review stood at Rs 11,938 crore, up 8 per cent from the same period last year because of supporting macroeconomic reasons, improvement in operational efficiencies and better realisations.

According to Bloomberg estimates, Hindalco Industries’ topline was seen at Rs 12,625 crore in the December quarter, while the bottomline was expected to be Rs 405 crore.

The interest expense of the company was fell 12 per cent in the quarter gone by at Rs 477 crore, mainly due to re-pricing of long term project loans and loan re-payments, it said in a release. "Hindalco delivered a very robust quarterly performance across all its businesses despite the challenging environment and rising inputs cost. It remained focussed on deleveraging, operational excellence, customer centricity and resource securitisation to deliver long term shareholder value," said a company statement.

EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) of the company stood at Rs 1,926 crore in Q3 FY19, up 4 per cent compared to same period last year as earnings from both aluminium and copper businesses moved up on year-on-year basis.

Aluminium EBITDA stood at Rs 1,286 crore in Q3 FY19, up 8 per cent from last year due to supporting macros, partially offseting increase in input prices. The company's aluminium metal production of 324,000 tonne in Q3 FY19 continued to operate at peak designed capacities.

Alumina (including Utkal Alumina) production was higher at 749,000 tonne vs 734,000 tonne in the corresponding period last year on account of better operational performance. Aluminium Value Added Products (VAP, including Wire Rod) production was 120,000 tonne in Q3 FY19 vs 123,000 tonne in Q3 FY18 because of lower wire rod production during the quarter.

The company along with the industry, continues to face inflow of high and cheap import making it difficult to keep market share intact. Rising aluminium and copper imports in India continue to impact the domestic market. Given Hindalco's integrated business model with the focus on customer centricity and downstream strategy, Hindalco is well poised to cater to the entire spectrum of market requirements, said the company management.