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

Q4 Results: Hindalco’s Operating Profit Declines But Beats Estimates

Hindalco Industries Ltd.’s operating profit for the quarter ended March declined but surpassed analysts’ estimates due to better-than-expected performance of domestic aluminium division, including Utkal Alumina International Ltd.

The company’s operating income, or earnings before interest, tax, depreciation and amortisation, fell 4.1 percent year-on-year to Rs 1,733 crore, the Aditya Birla Group’s flagship company said in an exchange filing. That compares with the consensus estimate of Rs 1,340 crore compiled by BloombergQuint.

“The beat is driven by the aluminum division because their copper production has been lower this quarter,” said Vikash Singh, vice president (metals and mining) at Phillip Capital. A “better” performance of its Uktal Alumina unit boosted the overall performance.

Net profit, including Utkal Alumina unit, too, fell 17.8 percent year-on-year to Rs 506 crore, while its revenue rose 6.5 percent on a yearly basis to Rs 12,455 crore. The company’s operating margin contracted 160 basis points to 13.9 percent.

Key Highlights:

  • Aluminium Ebitda fell 18 percent year-on-year to Rs 1,043 crore on stronger rupee and lower aluminum prices on the London Metal Exchange.
  • Copper Ebitda fell 4 percent over the last year to Rs 315 crore due to lower volumes.
  • The company announced a final dividend of Rs 1.20 apiece.

Shares of Hindalco rose 2.2 percent to Rs 194.85 apiece at around 1:40 p.m. after the earnings announcement compared with a largely unchanged Nifty.

Q4 Results: Hindalco’s Operating Profit Declines But Beats Estimates