Hindalco's Q3 net profit plunges 24% to Rs1,062 cr; revenue drops 12%
12 February 2020
Hindalco Industries has reported a 24 per cent year-on-year fall in its consolidated net profit to Rs1,062 crore for the October-December 2019-20 quarter, compared with Rs1,394 crore in the year-ago quarter.
Revenue from operations fell 12.09 per cent to Rs29,197 crore from Rs33,213 crore in the year-ago period.
Hindalco’s consolidated Ebitda stood at Rs3,676 crore, down 10 per cent against Rs4,080 crore in the year-ago quarter.
“For the past few years, Hindalco has continuously focused on improving plant operations. These efficiencies have helped us stay strong and steady amid weak markets. Despite global conditions, Novelis showed an increase in can and auto sheet shipments, spurred by growing consumer preference for sustainable packaging options and automotive closed-loop recycling systems,” managing director Satish Pai said.
Pai said that Hindalco’s strategic expansion projects in India and Novelis are on track. In January, Novelis successfully issued $1.6 billion bonds at attractive rates, reflecting the recognition and confidence in Hindalco-Novelis, he said.
For the quarter ended 31 December 2019, Novelis' profit, excluding tax-effected special items, stood at $132 million, up 31 per cent YoY. Novelis reported adjusted Ebitda of $430 per tonne, up 7 per cent.
Hindalco, a global leader in aluminium and copper, today said in spite of subdued economic conditions, the company delivered steady quarterly results on the back of strong performance by Novelis, lower input costs and stable operations of the Indian businesses.
Novelis delivered a continued strong operational and financial performance in Q3 FY20. Total shipments of flat rolled products (FRPs) were at 797 Kt, which is flat year-on-year. Beverage can sheet and automotive body sheet shipments, however, were higher by 4 per cent and 3 per cent, respectively, driven by growing consumer preference for sustainable packaging and light-weight vehicles.
Stable operations in the Indian Aluminium Business helped achieve Alumina (including Utkal) and Aluminium metal production of 662 Kt and 330 Kt, respectively, in Q3 FY20. Aluminium metal sales volume grew 2 per cent to 328 kt in Q3 FY 20. Aluminium VAP (excluding wire rods) volumes remained flat year-on-year, at 75 kt.
Overall production volumes of copper cathodes were down 18 per cent year-on-year to 86 Kt in Q3 FY20, compared to the prior year. The copper business’ value added product production was at 60 Kt, lower by 8 per cent year-on-year. Total VAP sales were up 3 per cent at 58 Kt in Q3 FY20, which is in line with market growth. Total copper metal sales were lower by 14 per cent, at 84 Kt in Q3 FY20, versus 99 kt in Q3 FY19 on account of lower production. Revenue from the Copper Business was Rs.4,774 crore in Q3 FY20 versus Rs.5,943 crore a year ago. EBITDA was lower at Rs.256 crore in Q3 FY20 compared to Rs490 crore in Q3 FY19, down by 48 per cent year-on-year, primarily due to lower volumes and realisations in Q3 FY20.