Hindalco March quarter profit drops but still beats estimates; stock price boostedDevdiscourse News Desk | New Delhi | Updated: 16-05-2019 14:40 IST | Created: 16-05-2019 14:31 IST
Aditya Birla Group flagship firm Hindalco Industries Thursday reported a 37.4 per cent decline in standalone profit to Rs 235.82 crore for the quarter ended March 31. The company had posted a standalone profit of Rs 376.97 crore in the year-ago period, Hindalco Industries said in a filing to BSE.
However, the company's standalone income during the January-March quarter increased to Rs 12,733.23 crore, over Rs 11,892.06 crore a year ago. Hindalco Industries Ltd is a global major in aluminium and copper.
In the statement, the company said, "PAT (profit after tax) for Q4 FY19 stood at Rs 506 crore (Rs 616 crore in Q4 FY18), primarily due to weaker macros and higher input costs in the last quarter." The consolidated profit 2018-19 fell to Rs 5,495.01 crore, over Rs 6,082.87 crore in the year ended March 31, 2018.
The company's board of directors "recommended dividend @ of 120 per cent i.e. Rs 1.20 per equity share of the face value of Re 1 each for the financial year ended 31st March 2019, subject to the approval of the shareholders at the ensuing annual general meeting," the filing said. Hindalco Industries Managing Director Satish Pai said, "Our FY19 consolidated profits reached an all-time high in spite of a difficult business environment. This resilient performance reflects the strength of our integrated business model, excellent operational capabilities, stable operations and our enriched product portfolio.
Novelis' innovative products and customer-centric approach helped it deliver its best-ever performance. In India, our increased focus on downstream is already showing encouraging results with record aluminium value-added product volumes this year. In copper, too, the share of value-added products (copper rods) has risen, helping the business maintain profitability despite lower volumes," he said. He said the company expects the impetus provided by India's growth to boost demand for aluminium.
"Rising imports of aluminium and copper, however, pose a threat and we look forward to suitable steps to provide a level playing field," he added. Shares of the company were trading up by 1.57 per cent at Rs 193.95 apiece on the BSE.