The reception desk at Hindalco Ltd. office in Mumbai. (Photographer: Sajeet Manghat/BloombergQuint).

Q3 Results: Hindalco Profit Rises On Better Realisations

Hindalco Industries Ltd.’s quarterly profit rose due to higher realisations.

Net profit, including that of its Utkal Alumina unit, rose 47.3 percent year-on-year to Rs 713 crore for the quarter ended December, the Aditya Birla flagship company said in its exchange filing.

The company’s revenue rose 8.1 percent over the last year to Rs 11,938 crore. Operating income, or earnings before interest, tax, depreciation and amortisation, increased 3 percent from the year-ago period to Rs 1,926 crore during the quarter. The operating margin, however, contracted 80 basis points to 16.1 percent.

“Rising aluminium and copper imports in India continue to impact the domestic market,” Hindalco said in a press release.

Hindalco’s standalone operating profit fell 26 percent to Rs 1,201 crore in the three months ended December, in line with Rs 1,264.5-crore consensus estimate of analysts tracked by Bloomberg. Also, the revenue rose 8 percent to Rs 11,938 crore in the quarter. That compares with the Rs 12,626-crore estimate.

Key Highlights:

(Year-On-Year)

  • Aluminium Ebitda rose 8.3 percent to Rs 1,286  crore.
  • Copper Ebitda rose 2.3 percent to Rs 431 crore.
  • Value-added copper production rose 59 percent year-on-year and contributed nearly three-fifths to the company’s sales volume.
  • Novelis Inc., Hindalco’s Atlanta-based aluminum unit, reported a 6 percent increase in adjusted Ebitda on higher shipments, favorable aluminum costs and better product mix.

Shares of Hindalco rose 0.7 percent after the results announcement, compared with a flat NSE Nifty 50 Index.