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.