 "Hindalco buck trend; hits fresh 52-week high on robust Q2 earnings")
Hindalco Industries has moved higher by 5% to Rs 181 on BSE, also its fresh 52-week high, in otherwise weak market after the company reported over three-fold jump in standalone net profit at Rs 440 crore for the quarter ended September 30, 2016 (Q2FY17), on back of strong operational performance. The company had profit of Rs 123 crore in the same quarter last fiscal.
Revenue from operations remained flat at Rs 9,562 crore, as the impact of higher aluminium revenues was largely negated by a sharp decline in copper realisations.
Profit before interest, tax and depreciation (PBITDA) margin improved to 15.6% in Q2FY17 from 11.2% in Q2FY16.
“The company’s operational performance was supported by benign energy prices and some recovery in the aluminium prices. The prices recovery is vulnerable to imminent Chinese capacity additions and smelter restarts. The high level of imports continues to impact domestic sales volumes,” Hindalco Industries said in a statement.
The company remains focused on operational excellence, higher value additions, customer centricity and cash conservation to tide over these issues, it added.
Meanwhile, the board of directors of the company approved fund raising plan up to an amount not exceeding Rs 5,000 crore through equity/ equity linked instruments.
At 11:06 am, the stock was up 4% at Rs 179 on BSE, as compared to 1.1% decline in S&P BSE Sensex. A combined 11.06 million shares changed hands on the counter on the BSE and NSE so far.
