HINDALCO REPORTS 10% DROP IN NET PROFIT, MISSES ESTIMATES

Hindalco Industries Ltd on Friday reported a 10.6% year-on-year drop in standalone net profit to ₹392.9 crore in the quarter ended September, due to higher raw material cost and an exceptional expense of ₹105.5 crore.

Even adjusted for the exceptional expense, the company’s profit was significantly below

Bloomberg consensus analyst estimates, which expected profit to rise to ₹495.4 crore.

The company said the exceptional expense was primarily a function of provisions made due to two Supreme Court judgements, one of which might affect one of Hindalco’s sub-judice litigations and the other one might create fee obligations.

Revenue during the quarter, similarly, despite rising 7.8% to ₹10,308.2 crore, fell short of estimates of ₹10,716.3 crore.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 20.1% from the year-ago period to ₹1,389.8 crore as EBITDA margin expanded by 138 bps to 13.48%.

Hindalco Industries Ltd on Friday reported a 10.6% yearon-year drop in standalone net profit to ₹392.9 crore for the quarter ended September, due to higher raw material cost and an exceptional expense of ₹105.5 crore.

Adjusted for the exceptional expense, the Aditya Birla Group company’s profit was largely in line with Bloomberg’s consensus analyst estimate of ₹495.4 crore.