Stock Market

Hindalco net jumps 123% at Rs 356 cr, income slips 7.5%

Chillicious Team 

Hindalco has posted net profit of Rs 356.3 crore in January-March quarter, up 123 percent from Rs 159.5 crore in corresponding quarter last fiscal. During the period, its total income slipped 7.5 percent at Rs 8667.5 crore compared to Rs 9371.6 crore in year-ago period.

The company has said in a press statement that revenue in Q4 was lower due to a sharp decline in aluminium and copper realisations.

During the period, EBITDA was up 37.6 percent at Rs 1166.4 crore compared to Rs 847.8 crore while EBITDA margin stood at 13.5 percent against 9 percent year-on-year (YoY).

The average LME prices (USD) for aluminium and copper were lower by 16 percent and 20 percent respectively as compared with the previous year. In aluminium business the impact was much severe due to a sharp fall in the local market premium, which declined by around 75 percent; and a sharp surge in imports of aluminium in the country.

“However, a strong increase in aluminium volumes following the increased production and our thrust on value addition across businesses helped us partially offset the impact of sharp fall in realisations. The weaker rupee also enabled partially offset the impact of the drop in realisations. The lower cost of raw materials, especially energy inputs was a major relief during the quarter,” it says in a statement.

Depreciation and finance cost were up 30 percent, given the progressive capitalisation of Greenfield projects.