Hindalco PAT above estimates at Rs 334 crore; stock off-lows

MUMBAI: Shares of aluminium and copper major Hindalco Industries were off day’s low in a weak market after it better-than-expected results for the quarter ended December 2013.

It posted a net profit of Rs 334 crore in October-December quarter against ET Now poll estimate of Rs 320 crore. The company had reported a net profit of Rs 433 crore in the same quarter last fiscal.

Sales for the quarter increased to Rs 7,200 crore, up 6 per cent, against Rs 6,789 crore in the same period a year ago. ET Now poll estimate indicated sales of Rs 6,800 crore.

The EBITDA margins for the quarter increased marginally to 8.7 per cent against 8.5 per cent, Year-on-Year. Other income was lower at Rs 204 crore vs Rs 318 crore, Y-o-Y.

Aluminium realisations declined due to fall in LME prices. Aluminium margins fell to 6.8 per cent vs 9.3 per cent, Y-o-Y. Revenues from aluminium business increased to Rs 2,471 crore against Rs 2,215.4 crore, Y-o-Y.

Copper revenues increased to Rs 4,816.7 crore from Rs 4,660.8 crore, Y-o-Y.

Kalpesh Makwana, Research Analyst- Media, Quant Broking, in an interview to ET Now said the headlines were better-than-expected. According to him, the stage II environmental clearance for Mahan plant will benefit the company as the plant will start producing coal in next two years. However, the aluminium premiums continue to remain a concern. They are expected to come down further in next few months.

He has advised investors to stay away from the stock.

At 03:15 p.m.; the stock was at Rs 100.25, down 3.14 per cent, on the NSE. It touched a high of Rs 104.55 and a low of Rs 99.75 in trade today.