Hindalco Industries, an Aditya Birla group company, reported a consolidated net profit of ₹506 crore in the January-March quarter, down 18 per cent compared with ₹616 crore logged in the same period last year.

This was primarily due to weaker macros and higher input costs. Revenue from operations was up at ₹12,455 crore against ₹11,687 crore in the same period the previous year.

The company has declared a dividend of ₹1.25 per equity share. EBITDA was down 4 per cent at ₹1,733 crore (₹1,807 crore) on lower realisation.

Satish Pai, MD, Hindalco Industries, said the increased downstream focus has already started yielding encouraging results, with record aluminium value-added product volumes this year. In copper too, he said the share of value-added products (copper rods) has risen, helping the business maintain profitability despite lower volumes.

The company has prepaid a long-term loan of ₹1,575 crore to strengthen its balance sheet. Hindalco’s consolidated Rrevenue for FY19 stood at ₹1,30,542 crore (₹1,15,820). The company delivered its highest-ever consolidated EBITDA  at ₹16,627 crore, up 11 per cent in FY19 compared with the prior year.

Hindalco’s US subsidiary, Novelis, delivered its best-ever performance in FY19. Revenue grew 8 per cent to $12.3 billion, driven by higher average aluminium prices, record shipments and an enriched product mix.

The Indian aluminium business delivered a revenue growth at ₹23,775 crore for FY19 (₹21,090 crore), on the back of stronger realisations and supportive macros. EBITDA at ₹5,202 crore in FY19 grew 9 per cent (₹4,790 crore). This growth was driven by supporting macros, stable plant operations and improved efficiencies, offset by higher input costs in FY19.

“Going forward, we expect the impetus provided by India’s growth to boost demand for aluminium. Rising imports of aluminium and copper, however,, pose a threat, and we look forward to suitable steps to provide a level playing field,” Pai said.

Related Topics