Aditya Birla group flagship
Hindalco Industries Friday reported 21.4 per cent decline in
standalone net profit at Rs 308.6 crore for the three months
to September roiled by rising input costs and surging imports,
which whittled down an otherwise strong business performance.
Total income rose to Rs 11,034.3 crore from Rs
10,500.6 crore, boosted by an 18 percent rise in revenue from
aluminium to Rs 6,135 crore.
Operating margin rose to Rs 1,364 crore, a growth of
13 per cent over the year-ago period, boosted by supporting
macros, partially offset by increase in the input prices.
The company has achieved consistent aluminium
production of 326 Kt in Q2, as its plants continued to operate
at peak designed capacities.
"We have registered strong quarterly results, despite
the challenging business environment, rising input costs of
coal and surge in imports," Hindalco managing director Satish
Pai told reporters here this evening.
"Although, aluminium prices on the LME went down by
USD 200 to USD 2000 a tonne during the quarter, the falling
rupee has helped our topline. We sold more aluminium during
the quarter despite strong monsoons on the East Coast," Pai
said, adding domestic demand for the metal also grew by 12 per
cent during the reporting quarter.
The net debt ratio improved further to 2.47x from
2.67x in March 2018. Under its continuous deleveraging
programme. It has prepaid another Rs 1,575 crore in October.
"We continue our focus on strengthening the balance
sheet, resource securitisation and the strategy is to grow in
the downstream businesses to deliver long-term shareholder
value," he said.
Overseas subsidiary, Novelis will continue to play a
crucial role in supporting the next generation of automotive
innovation and design, as the market demand for lighter and
more fuel-efficient vehicles grows, he said.
Applications for acquisition of the US-based aluminium
producer Aleris filed with the concerned authorities are at
various stages of approval, he said.
"We expect the transaction to close in about 9-15
months from the date of the announcement of the transaction.
Novelis had secured financing for the pending Aleris
acquisition by entering into commitment letters with a group
of banks to provide up to USD 775 million of incremental term
loan with a five-year maturity, and up to a USD 1.5 billion
short-term bridge loan with a one-year maturity," Paid said.
Hindalco had in July announced the plans to acquire
Aleris Corporation for USD 2.58 billion through its wholly-
owned subsidiary Novelis.
Utkal Alumina's brownfield capacity expansion is on
schedule and is expected to be operational by fiscal 2021, he
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