Home >Companies >News >Hindalco Industries Q3 consolidated net profit dips 24%
On a standalone basis, the company's net profit fell 64% to  ₹262 crore
On a standalone basis, the company's net profit fell 64% to 262 crore

Hindalco Industries Q3 consolidated net profit dips 24%

  • Net profit for the quarter ended 31 December was at 1,062 crore
  • EBITDA was down 10% at 3,676 crore, while EBITDA margin rose was 31 bps to 12.59%

MUMBAI : Mumbai: Hindalco Industries Ltd on Wednesday reported a 24% year-on-year (YoY) fall in its consolidated net profit for October-December, following a contraction in the domestic aluminium market along with a fall in premiums.

Net profit for the quarter ended 31 December was at 1,062 crore compared with 1,394 crore in the year-ago period. Revenue fell 12% YoY to 29,197 crore.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was down 10% at 3,676 crore, while EBITDA margin rose 31 basis points (bps) to 12.59%. Consolidated finance cost fell 4% to 889 crore due to a reduction in interest rates.

Novelis, the wholly-owned US unit of Hindalco, reported a net income (excluding tax-effected special items) of $132 million in Q3 FY20, a yearly increase of 31%.

Novelis’ revenue declined 10% to $2.7 billion in the reporting quarter as a fall in average aluminium prices and local market premiums was only partially offset by favourable recycling benefits. The company recorded its highest Q3 EBITDA of $343 million, growing 7% on year. Adjusted EBITDA per ton was $430 in Q3 FY20, also up 7% year-on-year.

On a standalone basis, the company's net profit fell 64% to 262 crore.

The company's annual aluminium revenue, including that from Utkal Alumina, declined to 10,254 crore from 11,965 crore in the year-ago quarter.

Standalone EBITDA was down 29% at 1,388 crore and EBITDA margin slipped 262 bps to 13.54%.

"In Q3 FY20, 80% of our consolidated EBITDA was non-LME linked. These trends bear out our focus on building our downstream, value-added portfolio, both for domestic and international markets. All our strategic expansion projects in India and Novelis are on track. In January 2020, Novelis successfully issued US$ 1.6 billion bonds at attractive rates, reflecting the recognition and confidence in Hindalco-Novelis," said Satish Pai, managing director at Hindalco Industries Ltd.

Shares of Hindalco Industries today closed a tad higher at 193.80 on the BSE.

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