Steam rises from molten aluminium as it cools inside ingot molds at an aluminium processing plant. (Photographer: Akos Stiller/Bloomberg)

Q1 Earnings: Hindalco’s Profit Doubles 

The profit of Hindalco Industries Ltd. more than doubled in the first quarter.

The country’s largest aluminium producer by market value reported a net profit of Rs 734 crore during the three months ended June, a jump of 102 percent from the year-ago period, according to its exchange filing.

Revenue of the base metals company rose 2 percent year-on-year to Rs 10,670 crore. The earnings include numbers from its Utkal Alumina unit. The revenue of the aluminium business rose to Rs 5,667 crore, while it fell to Rs 5,006 crore for the copper segment.

“The net profit and operating margins exceeded our expectations,” Noel Vaz, senior research analyst at IIFL securities, told BloombergQuint in an interaction. “Realisations for aluminium stood well. We expect the aluminium segment to report strong numbers in future.”

The company, in the filing, pointed out the rise in input costs, particularly for coal and furnace oil, and increasing imports of aluminium and copper as key risks.

Operating income, or earnings before interest, tax, depreciation and amortisation, rose 17 percent on a yearly basis to Rs 1,951 crore. The operating margin expanded to 18.3 percent from 15.9 percent a year ago.

Shares of Hindalco snapped a five-day winning streak and fell as much as 2.6 percent after the results were announced.

Other Highlights

  • Aluminium Ebitda rose 35.2 percent year-on-year to Rs 1,531 crore.
  • Copper Ebitda up by 4.03 percent at Rs 335 crore.

Also read: Hindalco’s Novelis To Buy Aleris In $2.6 Billion Deal