Hindalco slips into red with Rs 709 cr net loss

The company says ''limited'' visibility on aluminium demand from auto majors

Hindalco Industries on Friday reported a consolidated loss of Rs 709 crore for the quarter to June 2020, mainly impacted by disruptions in the wake of COVID-19.

The company's profit after tax (PAT) stood at Rs 1,063 crore during the corresponding quarter of 2019-20.

The consolidated revenue from operations of the company during the quarter under review declined to Rs 25,283 crore compared to Rs 29,972 crore in the same period of the previous financial year.

PAT was mainly impacted on account of charitable contributions towards COVID-19 relief, ex-gratia paid to employees for their contribution during the pandemic, Aleris acquisition costs and Rs 140 crore spent on operations of Novelis (Lewisport and Duffel) that are in the process of divestiture.

"I am pleased at our ability to forge ahead despite the weak post-Covid market scenario. All our aluminium India smelters operated at more than 90% capacity during the lockdown," Hindalco Industries Managing Director Satish Pai told reporters at a virtual press conference.

"We maintained our sales volumes, with exports accounting for nearly 80% of sales. This performance led to our Indian aluminium business recording an industry-high EBITDA margin," he added.

The company expects the exports to come down to 60% due to rise in domestic demand across all categories, except auto and constructions, Pai said.

Novelis also delivered an industry-high EBITDA per tonne amid a challenging business environment, partly due to strong contribution by Aleris, Pai said.