Hindalco’s Q3 Profit Misses Estimates On One-Time Loss

Hindalco Industries Ltd.’s quarterly profit missed estimates as India’s largest aluminium producer made provision for a one-time loss.

Net profit rose 18 percent on a yearly basis to Rs 375.5 crore in the three months ended December, according to its exchange filing. Analysts tracked by Bloomberg had pegged the profit at Rs 501.2 crore.

The company made a provision for a one-time exceptional loss of Rs 115 crore, based on a Supreme Court judgement on mining regulations. Its revenue rose 18.3 percent from last year to Rs 11,022 crore, beating estimates of Rs 10,953 crore.

Operating income rose 10.6 percent to Rs 1,311.7 crore, driven by higher volumes and metal prices, but was partially offset by higher input costs. Margin narrowed 82 basis points to 11.9 percent.

Segment Revenue

• Revenue from aluminium business rose 8.2 percent to Rs 5,323.3 crore, driven by higher sales and realisation.
• Revenue from copper business rose 14 percent to Rs 5,701 crore.

Novelis Profit Nearly Doubles

Hindalco’s U.S. arm Novelis’ net profit surged 92 percent over a year ago to $121 million. Revenue rose 33 percent on a yearly basis to $3,085 million, supported by quarterly shipments of 796 kilotonnes.

• Adjusted operating income of Novelis stood at $305 million, up 20 percent over the previous year.
• The company also plans to invest $300 million in the U.S. to expand its footprint.

Shares of the Aditya Birla Group company fell as much as 3.9 percent, the most in a month, after the earnings were announced. That compares with a 1.7 percent fall in the benchmark S&P BSE Sensex.