Hindalco Industries' consolidated net profit tumbled 43.3% to Rs 668 crore on 13.1% decline in revenue from operations to Rs 29,318 crore in Q4 FY20 over Q4 FY19.
EBITDA rose 6% to Rs 4,173 crore in the fourth quarter from Rs 3,938 crore in the same period last year. EBITDA margin in Q4 FY20 stood at 14% from 12% in Q4FY19.
Consolidated profit before tax (before exceptional items) was Rs 1,395 crore in Q4 March 2020 compared to Rs 1,725 crore in the same quarter of the previous year, down 19% YoY, mainly due to Novelis' refinancing cost of Rs 568 crore in Q4 FY20.
The consolidated net debt to EBITDA ratio, a measurement of leverage, was 2.61x as of 31 March 2020 compared with 2.48x on 31 March 2019.
Consolidated net profit fell 31.4% to Rs 3,767 crore on 9.5% decline in revenue from operations to Rs 1,18,144 crore in the year ended March 2020 (FY20) over the year ended March 2019 (FY19). PBT stood at Rs 6,208 crore in FY20, down by 23.2% from Rs 8,083 crore in FY19.
Novelis delivered yet another record quarterly performance for Q4FY20, driven by portfolio optimization efforts and better cost efficiencies coupled with favourable demand for lightweight, sustainable aluminium solutions across end-markets. Novelis recorded its highest-ever quarterly adjusted EBITDA of $383 million, a growth of 7% over the prior year. Novelis reported a net income (excluding tax-effected special items) of $153 million in Q4FY20, an increase of 18% over Q4FY19. Revenue was down 12% year-on-year at $2.7 billion in Q4FY20, mainly driven by lower average global aluminium prices and local market premiums.
Hindalco said its four aluminium smelters and the Utkal alumina refinery in India operated at near full capacity during the lockdown. The company's coal and bauxite mines also operated at regular scale. More than 80% of the total output is being exported to minimise inventory build-up and to absorb plant fixed costs, the firm said.
The company's aluminium downstream plants had shut down initially, except for two that continued to operate and serve essential sector customers. However, downstream operations have resumed at reduced capacity to meet existing market demand.
After initial temporary shutdowns, Hindalco's Copper smelters have restarted operations and are now stabilising to reach optimal levels.
In the U.S., Novelis experienced increased disruption to its global aluminium production and supply chain - including the shutdown of some of its plants - due to government decrees and some customers temporarily shutting down their own manufacturing facilities.
"In spite of the operational challenges, Hindalco continued to serve its customers in essential industries, by reorienting supply chains to offer uninterrupted supplies from its warehouses and its operating plants", the company said.
Hindalco Industries, the metals flagship company of the Aditya Birla Group, is the world's largest aluminium rolling and recycling company, and a major copper player. It is also one of Asia's largest producers of primary aluminium.
Shares of the aluminium maker rose 1.14% to Rs 146.10 on Friday.
In the past one month, the stock has gained 24.6% while the benchmark S&P BSE Metal index rose 14.4% during the same period.
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