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

The Economic Times - - Companies: Pursuit Of Profit - Our Bu­reau

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.

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