Hindalco top Sensex loser ahead of Q1 results

MUMBAI: Shares of Hindalco were down on profit-booking ahead of the company's first-quarter results, and also as its subsidiary – Novelis, reported slightly-below-expected earnings.

According to ET Now poll estimates, the company is likely to report a standalone net profit of Rs 310 crore, down 27 per cent, against a net profit of Rs 425 crore in the corresponding quarter last fiscal year.

Net sales are seen at Rs 6,000 crore, down 0.5 per cent, from Rs 6,027 crore in the year-ago period. Revenues are seen declining marginally, as aluminium realisations are expected to fall.

Operating margins are seen declining to 6.5 per cent versus 7.7 per cent on low realisation.

Copper volumes are likely to be down quarter on quarter due to maintenance shutdown, while aluminium sales volumes may go up 4 per cent. Average aluminium prices in Q1 stood at $1847/tn versus $1978/tn.

The Street will be keenly awaiting management commentary on progress of Mahan coal block.

Novelis' net income fell to $14 million against $91 million YoY. Non-recurring charge of $14 million impacted its bottom line. The company's sales slipped to $2.4 billon versus $2.6 billon YoY.

At 12:40 p.m.; the stock was at Rs 90.15, down 3.84 per cent, on the BSE. It touched a high of Rs 92.75 and a low of Rs 89.80 in today's trade.