Hindalco Industries Ltd. reported a sharp jump in profit in the quarter ended March but its revenue dropped.
Standalone net profit rose 38% year-on-year to Rs 326 crore in the three-month period, the company said in a statement. This has been adjusted for an impairment on financial assets amounting to Rs 22 crore. The consensus estimate of analysts tracked by Bloomberg estimated profit at Rs 216 crore.
Revenue, however, fell 19.2% year-on-year to Rs 9,992 crore as sales of copper and aluminium declined during the period and the metals traded lower on the London Metal Exchange. The estimate for revenue was Rs 9,658.8 crore.
A reduction in operational costs—including those on employees, electricity and fuel—helped the metals and mining company clock a higher operational margin of 11.6% versus 7.5% in the same period last year. Analysts had expected 10.1%. Operational profit, too, rose 25.7% to Rs 1,163 crore compared with the Rs 978.8-crore estimate.
On Friday, Hindalco shares rose 1.14% to Rs 146.05 apiece on the NSE even as the benchmark Nifty 50 gained 0.72% to end the day at 9,972.90 points.
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