Hindalco PAT at ~290 crore misses Street expectations
Hindalco Industries, the country's largest aluminium producer, on Friday reported a lower-than-expected standalone net profit of ~290 crore, down 2 per cent year-on-year for the June quarter.
Bloomberg consensus estimate for the net profit was ~389 crore. However, this was on the back of provisioning of ~104 crore made by the company following recent Supreme Court judgment in a matter pertaining to mining regulations.
In the period under review, total income of the Aditya Birla Group company rose 27 per cent on an year-on-year basis to ~10,663 crore and was ahead of consensus estimates of ~10,223 crore. Higher sales and better realisation in aluminium, coupled with higher volumes and stronger copper realisations on the London Metal Exchange (LME), lent firm support to the revenue stream.
“The overall demand from user industries remained subdued due to apprehensions of the GST roll-out. However, with the smooth implementation of the GST, in the longrun, the economy is expected to grow at a faster pace,” said the company release.
Revenues from the aluminium business were up nine per cent on year-on-year at ~5,008 crore, while that of copper jumped 51 per cent in the quarter gone by to ~5,403 crore, against the corresponding period last year. Improved coal security also helped aluminium business to report better profitability. The company saw its coal security improve further with new coal linkages of 2.9 million tonnes in Q1 FY18. “Higher level of aluminium and copper imports and an increase in domestic aluminium production continue to impact domestic sales volumes. Hindalco remains focused on accelerated deleveraging, operational excellence, higher value addition, customer centricity and cash conservation to deliver stake holder value,” said the release. The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at ~1,404 crore (up four per cent year-on-year) in the June quarter. This was much higher than ~1,245 crore indicated by consensus estimates.
Bloomberg consensus estimate for the net profit was ~389 crore