Hindalco Revenue Rises 28%, but Provisioning Keeps Net Profit Flat
Co makes provision of .₹ 104 cr as a matter of caution linked to an Odisha mining issue
Mumbai: Aluminium major Hindalco has reported a 28% year-onyear increase in quarterly revenue, even as net profit declined slightly on account of higher raw material cost and special provisioning.
For the April-June quarter, revenue stood at ₹ 10,407 crore, while net profit came in at ₹ 290 crore, down by 1.4% from the same quar- ter a year ago, the company said on Friday. EBITDA stood at ₹ 1,404 crore, up 4%, supported by higher aluminium and copper volumes, though an increase in cost of raw materials by 47% partially offset supportive macros. According to the company, an exceptional expense of ₹ 104 crore was made as “a matter of abundant caution” in an issue related to mining regulation in Odisha following a recent judgement by the Supreme Court which pulled down profits.
During the quarter, the company also prepaid ₹ 4,504.5 crore of rupee term loan taken from banks with an additional ₹ 894 crore paid during the month of July, bringing the net interest expense down by 19%. “Till date in FY18, the company has prepaid ₹ 5,399 crore and we expect to pay back around ₹ 2,000 crore in the coming quarter, managing director Satish Pai told ET.
“Our deleveraging exercise is going through and we plan to repay around ₹ 9,000 crore by the end of this fiscal with a net debt to EBITDA ratio guidance of 3. We want to reach a net debt of ₹ 15,000 crore by the end of this fiscal,” he said.
A new coal linkage of 2.9 million tonnes, awarded in the quarter, is expected to improve coal security for the company. While revenues from aluminium grew by 9% year-on-year at ₹ 5,008 crore, driven by higher sales and realisation, copper revenues went up by 51% at ₹ 5,403 crore.