Hindalco Industries posts Q1 loss at Rs 709 crore

This performance led to our Indian aluminium business recording an industry-high EBITDA margin,” he added. The company expects the exports to come down to 60 per cent due to rise in domestic demand across all categories, except auto and constructions, Pai said.

Hindalco Industries on Friday reported a consolidated loss of Rs 709 crore for the quarter to June 2020, mainly impacted by disruptions in the wake of COVID-19. The company's profit after tax (PAT) stood at Rs 1,063 crore during the corresponding quarter of 2019-20.

The consolidated revenue from operations of the company during the quarter under review declined to Rs 25,283 crore compared to Rs 29,972 crore in the same period of the previous financial year. PAT was mainly impacted on account of charitable contributions towards COVID-19 relief, ex-gratia paid to employees for their contribution during the pandemic, Aleris acquisition costs and Rs 140 crore spent on operations of Novelis (Lewisport and Duffel) that are in the process of divestiture.

"I am pleased at our ability to forge ahead despite the weak post-Covid market scenario. All our aluminium India smelters operated at more than 90 per cent capacity during the lockdown," Hindalco Industries Managing Director Satish Pai told reporters at a virtual press conference. "We maintained our sales volumes, with exports accounting for nearly 80 per cent of sales. This performance led to our Indian aluminium business recording an industry-high EBITDA margin,” he added.

The company expects the exports to come down to 60 per cent due to rise in domestic demand across all categories, except auto and constructions, Pai said. Novelis also delivered an industry-high EBITDA per tonne amid a challenging business environment, partly due to strong contribution by Aleris, according to Pai. "Novelis' automotive customers across regions are trending upwards, towards reaching pre-pandemic production levels, with record automotive shipments in China. We are seeing green shoots both in domestic and international markets and we are ready to handle the rise in demand,” he added.

Talking about capex, Pai said, Hindalco Industries capital expenditure for FY21 is Rs 1,500 crore, while USD 450 million is for both Novelis and Aleris. At a time when there are reports of pay cuts, Hindalco has given extra bonus to its employees, Pai said.

"We have given extra bonus to our employees for their hard work they did during the difficult times," he added. He said the company's hiring strategies remained the same as they are based on long-term requirements.

"We will hire the 100 engineers that we had recruited before the pandemic. Besides there will be openings in several other departments including the human resource. As our hiring strategies are in line with long term goals, there will be no change in them," Pai explained. Hindalco Industries is the metals flagship company of the Aditya Birla Group. A 16.7 billion dollar metals powerhouse, Hindalco is the world’s largest aluminium rolling and recycling company, and a major player in copper. It is also one of Asia’s largest producers of primary aluminium..