Hindalco delivers decent performance in Q3, outlook remains subdued

Analysts have maintained 'buy' rating on stock

After a decent showing by US subsidiary Novelis on Tuesday, the Q3 show of Hindalco’s India business, albeit weak compared to the year-ago period, beat expectations. The decline in revenue and profit was expected, given the weak base metal prices and demand. 

Average global aluminium prices had dropped 11 per cent to $1,754 a tonne in Q3, while a slowdown also meant the Indian market for the metal contracted 14 per cent year-on-year (YoY) and 5 per cent during first nine months of FY20. 

Hence, the aluminium business (including Utkal operations) reported 9 per cent decline in revenue. The segment’s