Q1 Results: Hindalco’s Profit Slips 77%, Misses Estimates
A porter walks past a shop that stocks products of Hindalco Industries Ltd., in Delhi. (Photographer: Amit Bhargava/Bloomberg News)

Q1 Results: Hindalco’s Profit Slips 77%, Misses Estimates

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Hindalco Industries Ltd.’s profit slumped even as its operational performance surpassed estimates, buoyed by its aluminium division.

The company’s profit-after-tax fell 77 percent year-over-year to Rs 167 crore in the quarter ended June, it said in an exchange filing. That’s below the Rs 234-crore consensus estimate of the analysts tracked by Bloomberg.

Revenue fell 6 percent year-on-year to Rs 10,055 crore, just shy of the analysts’ estimate of Rs 10,663 crore.

Hindalco’s operational performance, however, came ahead of the forecast. Earnings before interest, taxes, depreciation and amortisation fell 35 percent to Rs 1,275 crore, ahead of the Rs 924 crore projected.

The company said it adopted the new Indian accounting standards-116 in the first quarter, resulting in reduction of opening equity, or equity at the start of the financial year. That was Rs 13 crore pre-tax as of April 1, it said. Hindalco also said the reduction in equity had no material impact on its earnings.

Also read: Q1 Results: Low Prices, Weak Demand Hurt Tata Steel’s Profitability 

Segment-Wise Performance

  • Aluminium Ebitda fell 42 percent to Rs 889 crore, but surpassed the Rs 812-crore consensus estimate.
  • Copper Ebitda fell 23 percent to Rs 267 crore. The consensus estimate stood at Rs 278 crore.

Shares of Hindalco were trading 2.4 percent lower after the announcement of the results, compared with a 1 percent advance in the Nifty Index.

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