Hindalco Q4 profit drops 18% to Rs 506 crore, still beats Street estimates

NEW DELHI: Hindalco Industries on Thursday reported a 17.9 per cent year-on-year drop in profit at Rs 506 crore for March quarter compared with Rs 616 crore in the corresponding quarter last year. This included numbers from Utkal operations.

This was against Rs 377 crore net estimated by analysts in an ET Now poll.

Revenue from operations rose to Rs 12,455 crore from Rs 11,687 crore YoY. Analysts in an ET NOW poll had projected sales at Rs 11,506 crore.


Ebitda for the quarter fell 4 per cent YoY to Rs 1,733 crore on lower realisations and stronger rupee.

Excluding Utkal operations, Hindalco’s profit fell 37 per cent to Rs 236 crore from Rs 377 crore on a yearly basis. Standalone revenue rose 6 per cent to Rs 12,373 crore from Rs 11,687 crore.

“In India, our increased focus on downstream is already showing encouraging results with record aluminium value added product volumes this year. In copper too, the share of value added products (copper rods) has risen, helping the business maintain profitability despite lower volumes. 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,” said Satish Pai, Managing Director, Hindalco Industries.

Revenue from copper segment jumped to Rs 6,503 crore in Q4FY19 against Rs 6,176 crore in the same period last year, aided by higher copper prices. Ebitda for the quarter stood at Rs 315 crore (Rs 329 crore in Q4 FY18), lower by 4 per cent on account of lower Tc/Rc (treatment charge/ refining charge) and volumes.