Hindalco’s Q3 Copper Volumes Hurt By Shutdowns, Weak Demand: MD Satish Pai
Hindalco Industries Ltd.’s copper volumes in the December quarter of the ongoing financial year were weighed down by unplanned shutdowns and subdued demand, according to Managing Director Satish Pai.
“What impacted our third-quarter copper performance were unplanned shutdowns,” Pai told BloombergQuint in an interaction, adding that the disruptions have now been sorted. “The second part was also the copper demand, just like aluminum demand, was fairly weak.”
The operating profit of the company’s domestic copper and aluminium businesses fell 48 percent and 17 percent over the previous year to Rs 256 crore and Rs 1,036 crore, respectively.
“I think in Q4 you will see the volumes pick up because a large part of that Ebitda was actually due to our volumes being down,” he said. “Going forward, in Q4 you will see a further 2 percent improvement in the cost of production.”
Hindalco Q3 Results 2019-20: Key Highlights (YoY)
- Net profit fell 21.9 percent to Rs 193 crore
- Revenue fell 14.3 percent to Rs 10,230 crore
- Ebitda rose 9.3 percent to Rs 1,1013 crore
- Ebitda margin rose 220 basis points to 9.9 percent
On Thursday, Hindalco shares rose 0.85 percent to Rs 195.30 apiece on the NSE while the benchmark Nifty 50 fell 0.22 percent to 12,174.65 points.