Lower realisations happened because falling global benchmark prices of aluminium and copper affected profitability
Copper volumes during the quarter fell because of a planned maintenance shutdown, the company said
Mumbai: Hindalco Industries, which houses the metals business of the Aditya Birla Group, reported a net profit of ₹1,063 crore in the June 2019 quarter, falling nearly 28% from the ₹1,475 crore reported in the year-ago period.
Lower realisations happened because falling global benchmark prices of aluminium and copper affected profitability.
Revenue for the quarter fell 3.5% in the quarter to ₹29,972 crore, while EBITDA fell 13% to ₹3,769 crore. Novelis, Hindalco’s US-based aluminium rolling and beverage can sheet making subsidiary, saw segment results rise 5% to ₹2,538 crore, while aluminium and copper results fell 41% to ₹889 crore and 23% to ₹267 crore respectively. Copper volumes during the quarter fell because of a planned maintenance shutdown, the company said.
“This quarter, we are seeing the benefits of diversifying into upstream and downstream," Satish Pai, MD and CEO, Hindalco, told Mint. “Novelis has excellent results and it’s not affected by LME (London Metal Exchange) prices. They’ve had a record quarter. In the Indian aluminium side, we see the impact of prices. But compared to other players we are doing much better. The macroeconomic environment is a little bit of a worry," he said.
“We are focused on the fundamentals of the business. The can market is growing and we’ve seen Novelis’ auto shipments rise. Our brownfield expansion is growing. Novelis is going to have a great year. The copper business had a shutdown, but it’ll come back strongly. We will continue operating at these levels till LME prices go up," Pai added.
Shares of Hindalco closed at ₹176.10 apiece, down 2.73%, on the BSE on Friday.