Hin­dalco Q1 net profit jumps over 4-fold to R294 cr

The Financial Express - - COMPANIES -

New Delhi, Aug 12: Alu­minium maker Hin­dalco on Fri­day re­ported over four-fold jump in stand­alone net profit to over R 294 cr ore for the quar­ter ended June 30, helped by bet­ter op­er­a­tional per­for­mance.

The Aditya Birla Group flag­ship had clocked net profit of R61.10 crore in the year-ago pe­riod.

It said in a BSE fil­ing that its to­tal stand­alone in­come fell by 11% to R7,716,53 crore in AprilJune quar­ter of the cur­rent fis­cal, from R8,667 crore dur­ing the same pe­riod of 2015-16, on ac­count of de­cline in real­i­sa­tions. To­tal ex­penses of the com­pany de­clined to R6,703.82 crore from R7,993.05 crore dur­ing the pe­riod un­der re­view.

Mar­ket wel­comed the com­pany's per­for­mance, with its scrip ris­ing by 2.81% to R146.25 apiece on BSE in the af­ter­noon trade. The firm said its rev­enues were hit due to a “sharp de­cline in real­i­sa­tions,” while the net profit rose by more than four-fold helped by “bet­ter op­er­a­tional per­for­mance”.

“The com­pany de­liv­ered a ro­bust op­er­a­tional per­for­mance in ad­verse macroeconomic con­di­tions. Its op­er­a­tional per­for­mance was also sup­ported by de­fla­tion­ary en­ergy prices,” Hin­dalco said.

In spite of a fall in alu­minium rev­enues, the year-on- year (y-o-y) alu­minium rev­enues were higher by 8% on the back of a strong vol­ume growth but a 28% drop in cop­per rev­enues negated this in­crease, it added. The av­er­age Lon­don Metal Ex­change (LME) prices for alu­minium and cop­per were lower by 11% and 22% re­spec­tively in April-June 2016-17 as against a year ago.

In alu­minium busi­ness, the im­pact was more se­vere due to a sharp fall in the lo­cal mar­ket pre­mium, which de­clined by as much as 5-0%. Con­tin­ued strong im­ports of alu­minium in to the coun­try also ad­versely im­pacted the re­sults.

Weak Ru­pee en­abled par­tially to off­set the ef­fect of the drop in real­i­sa­tions. The lower cost of raw ma­te­ri­als, es­pe­cially en­ergy in­puts, was a ma­jor re­lief dur­ing the quar­ter.

Go­ing ahead, the firm said, macroeconomic head­winds still per­sist and the un­cer­tain global macro fac­tors pose sev­eral chal­lenges.

“The high level of im­ports con­tinue to im­pact do­mes­tic sale vol­umes. Hin­dalco con­tin­ues to fo­cus on op­er­a­tional ex­cel­lence,higher value ad­di­tion, cus­tomer cen­tric­ity and cash con­ser­va­tion to tide over these is­sues,” it added. PTI

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.