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Hindalco logs 28% decline in Q1 net; key takeaways

Revenue dropped 4 per cent to Rs 29,972 crore from Rs 31,078 crore posted in the corresponding quarter last year.

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Last Updated: Aug 09, 2019, 02.39 PM IST|Original: Aug 09, 2019, 02.39 PM IST
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Mumbai: Hindalco Industries reported a 28 per cent year-on-year (YoY) drop in consolidated profit at Rs 1,063 crore for the June quarter. In comparison, it had posted a profit of Rs 1,475 crore in the same quarter last year.

Revenue dropped 4 per cent to Rs 29,972 crore from Rs 31,078 crore posted in the corresponding quarter last year.

Here are key takeaways:

Novelis
Novelis delivered strong operational and financial quarterly performance. Adjusted EBITDA grew 11 per cent to touch a record high of $372 million in Q1 FY20, driven by higher shipments coupled with favourable price and product mix, partially offset by less favourable recycling benefits due to lower aluminium prices.

Hindalco including Utkal Alumina
Stable operations of the Indian Aluminium Business helped achieve Alumina (including Utkal) and Aluminium metal production of 686 Kt and 326 Kt in respectively, in Q1 FY20. Reported revenue of Rs. 5,472 crore in the June quarter was lower by 3 per cent due to lower realisations.

Copper
The Copper Business recorded its highest quarterly Value Added Product (VAP) production at 66 Kt in Q1 FY20, up 2 per cent YoY. The overall production volumes (copper cathodes) were at 76 Kt in Q1 FY20, lower compared to the prior year, due to planned maintenance shutdown. The total copper metal sales remained steady at 82 Kt in Q1 FY20 vis-à-vis Q1 FY19.

Aleris acquisition
All Regulatory approvals for the Aleris acquisition continue to progress and are expected to close in Q3 FY20.

Brownfield capacity expansion
Utkal Alumina’s brownfield capacity expansion of 500 Kt is on track and is expected to be operational by mid FY21.
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