Hindalco Q2 Results: Profit At Rs 2,196 Crore, Meets Estimates

Hindalco Industries Ltd.'s profit rose in the second quarter, in-line with analysts' estimates.

The aluminium producer's net profit was flat year-on-year at Rs 2,196 crore in the September quarter, according to an exchange filing on Friday. That compares with the Rs 2,214.8-crore consensus estimate of analysts tracked by Bloomberg.

• Revenue down 3.57% at Rs 54,169 crore. (Bloomberg estimate: Rs 47,805.5 crore) 

• Ebitda up 4.66% at Rs 5,612 crore. (Bloomberg estimate: Rs 5,541.1 crore) 

• Ebitda Margin at 10.36% vs 9.55%  (Bloomberg estimate: Rs 11.6%)

• Reported profit down 0.4% at Rs 2196 crore. (Bloomberg estimate: Rs 2,214.8 crore) 

Revenue fell 3.6% on account of a 2.4% decline in shipments to 1.49 million tons from 1.53 million tons.

Margins expanded by 81 basis points driven by a 27.6% drop in power fuel costs to Rs 3,622 crore. A 41% rise in other other income to Rs 463 crore and a Rs 85 crore higher deferred tax expense led to a 0.4% reduction in net profit .

• Novelis: Hindalco's American subsidiary's Ebitda fell 1.2% to Rs 3,998 crore. Shipments fell 5.2% to 933 kilo tons.

• Aluminium Upstream: The upstream segment's operational earnings rose 54% in the second quarter. Shipments fell 2.1% to 334,000 kilo tons.

• Aluminium Downstream: Operating profit for the downstream segment decreased 14.5% to Rs 171 crore. Shipments fell 1.1% to 94,000 kilo tons

• Copper: Ebitda rose 20% to Rs 653 crore compared to Rs 544 crore in the previous year. Shipments rose 19.6% to 134,000 kilo tons

Ebitda per ton for its American subsidiary Novelis rose marginally by 1% to $519 per ton mainly driven by higher volumes, particularly in can shipments which grew 12% sequentially. Novelis has maintained its Ebitda per ton guidance of $450-$500 per ton in Q3 and $525 per ton in Q4.

Ebitda per ton for its upstream Aluminum business rose 52% to $751 per ton driven by lower input costs while for the downstream business it fell 16% to $221 per ton.

Shares of Hindalco Industries pared gains declining 1.46% from the day's high of Rs 488.25, to trade 0.63% lower at Rs 481.4, after the results were announced, compared to a 0.12% decline in the NSE Nifty 50 at 2:37 p.m