Hindalco Industries gained 3.28% to Rs 178 at 11:21 IST on BSE after net profit surged 256.18% to Rs 439.74 crore on 1.28% rise in total income to Rs 9,494.40 crore in Q2 September 2016 over Q2 September 2015.
The result was announced on Saturday, 12 November 2016. The stock markets were closed on Monday, 14 November 2016, for a public holiday.
Meanwhile, the S&P BSE Sensex was down 375.78 points or 1.4% at 26,443.04
On BSE, so far 12.41 lakh shares were traded in the counter as against average daily volume of 19.92 lakh shares in the past two weeks. The stock hit a high of Rs 180.50 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 173.10 so far during the day. The stock had hit a 52-week low of Rs 58.85 on 12 February 2016.
The large-cap company has equity capital of Rs 206.52 crore. Face value per share is Re 1.
Hindalco Industries said that in aluminium segment, the company delivered robust operational performance in Q2 September 2016 in a challenging macroeconomic environment on the back of efficiency gains and lower input costs. Improved visibility over coal sourcing and cost and major portion of requirement secured through linkages, Hindalco Industries said. In copper segment, copper performance rebounded strongly in Q2 September 2016 post successful completion of planned maintenance shutdown.
Aluminium production increased 19% to 321 KT (Kilo Tonne) in Q2 September 2016 over Q2 September 2015, significant cost efficiencies achieved across the plants. Inputs costs were largely supportive though crude derivative prices hardened sequentially, Hindalco Industries said. Aluminium Value Added Products (FRP and Extrusions) rose 8%, Wire Rod Production increased 36% reflecting the company's focus on power and other growth sectors, Hindalco Industries said. The company delivered highest ever quarterly copper production at 106 KT, after successful planned annual maintenance shutdown. Improved efficiencies helped offset sharp decline in sulphuric acid prices, the company said. Revenues for Q2 September 2016, were broadly stable, as the impact of higher aluminium revenues was largely negated by a sharp decline in copper realisation, it added. Following a notification issued by the Ministry of Coal making applicability of contribution to District Mineral Foundation effective retrospectively from 12 January 2015, a one-time provision of Rs 60 crore has been made during Q2 September 2016 and is included in exceptional items.
Hindalco Industries said that the macroeconomic headwinds still persist and the uncertain global macro factors pose several challenges. The price recovery is vulnerable to imminent Chinese capacity additions and smelter restarts. The high level of imports continue to impact domestic sales volumes. Hindalco remains focussed on operational excellence, higher value addition, customer centricity and cash conservation to tide over these issues, the company said.
Hindalco Industries' board of directors approved raising of long term finance by way of public or private offerings through equity or equity-linked instruments on preferential allotment basis through Qualified Institutional Placement, Rights Offer, Global Depository Receipts, American Depository Receipts and Foreign Currency Convertible Bonds of up to Rs 5000 crore.
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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