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Hindalco gains after announcing robust Q1 earnings

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Capital Market
Last Updated : Aug 12 2016 | 2:47 PM IST

Hindalco Industries rose 2.57% to Rs 145.90 at 14:18 IST on BSE after net profit jumped 381.34% to Rs 294.10 crore on 11.4% decline in revenue from operations to Rs 7597.30 crore in Q1 June 2016 over Q1 June 2015.

The result was announced during market hours today, 12 August 2016.

Meanwhile, the S&P BSE Sensex was up 298.44 points or 1.07% at 28,158.04.

On BSE, so far 22.68 lakh shares were traded in the counter as against average daily volume of 14.03 lakh shares in the past one quarter. The stock rose as much as 4.67% at the day's high of Rs 148.90 so far during the day. The stock rose 0.52% at the day's low of Rs 143 so far during the day. The stock had hit a 52-week high of Rs 151.90 on 8 August 2016. The stock had hit a 52-week low of Rs 58.85 on 12 February 2016. The stock had outperformed the market over the past one month till 11 August 2016, surging 10.23% compared with 0.84% rise in the Sensex. The scrip had also outperformed the market in past one quarter, advancing 55.29% as against Sensex's 8.84% rise.

The large-cap company has equity capital of Rs 206.50 crore. Face value per share is Rs 1.

Hindalco Industries' earnings before interest, taxation, depreciation and amortization (EBITDA) rose 34.45% to Rs 1350.90 crore in Q1 June 2016 over Q1 June 2015.

The decline in Hindalco's revenue in Q1 June 2016 was due to sharp decline in realisations.

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Hindalco said it has secured around 25% of its coal requirement in the recently concluded coal linkage auctions, at a reasonable premium to government notified price. This, along with the existing linkage for Renusagar power plant and captive coal mines will provide adequate coal security and good visibility to power cost for aluminium production, Hindalco said. This is significant development, considering the company's cost competitive alumina value chain, including Utkal Alumina, which will help bolster its cost competitiveness, the company said in a statement.

The company said that it has delivered a robust operational performance in adverse macroeconomic conditions. Its operational performance was also supported by deflationary energy prices, the company said. Hindalco said that the high level of imports continue to impact domestic sales volumes. The company continues to focus on operational excellence, higher value addition, customer centricity and cash conversation to tide over these issues, Hindalco said in a statement.

A part of the Aditya Birla Group, Hindalco Industries is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is amongst the largest single location custom smelter globally.

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First Published: Aug 12 2016 | 2:15 PM IST

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