Hindalco's Q3 profit falls by 24 pc to Rs 1,062 crore

Hindalco Industries Ltd, the metals flagship company of Aditya Birla Group, on Wednesday reported 24 per cent decline in its consolidated net profit at Rs 1,062 crore for the October to December quarter compared to Rs 1,394 crore in the same quarter of previous year.

Hindalco Industries Ltd, the metals flagship company of Aditya Birla Group, on Wednesday reported 24 per cent decline in its consolidated net profit at Rs 1,062 crore for the October to December quarter compared to Rs 1,394 crore in the same quarter of previous year. Consolidated revenue fell by 12 per cent to Rs 29,197 crore compared to Rs 33,213 crore in the year-ago period.

"In spite of subdued economic conditions, the company delivered steady quarterly results on the back of strong performance by Novelis, lower input costs and stable operations of the Indian businesses," the company said in a statement. Total earnings before interest, tax, depreciation and amortisation (EBITDA) was Rs 3,676 crore in Q3 FY20 compared to Rs 4,080 crore in Q3 FY19, marking a decline of 10 per cent. The consolidated net debt to EBITDA ratio was 2.65 times as on December 31, 2019 compared to 2.48 times on March 31, 2019.

Consolidated profit before exceptional items and tax was Rs 1,487 crore in Q3 FY20 compared to Rs 1,931 crore in the prior year, down by 23 per cent. Segment-wise, revenue from aluminium segment was down by 9 per cent at Rs 5,467 crore as against Rs 6,019 crore a year ago due to lower realisations. Revenue from the copper business was Rs 4,774 crore in Q3 FY20 versus Rs 5,943 crore a year ago.

"For the past few years, Hindalco has continuously focused on improving plant operations. These efficiencies have helped us stay strong and steady amid weak markets," said Managing Director Satish Pai. Despite global conditions, Novelis showed an increase in can and auto sheet shipments, spurred by growing consumer preference for sustainable packaging options and automotive closed-loop recycling systems, he added.

"All our strategic expansion projects in India and Novelis are on track. In January, Novelis successfully issued 1.6 billion dollar bonds at attractive rates, reflecting the recognition and confidence in Hindalco-Novelis," said Pai. Hindalco Industries is the metals flagship company of the Aditya Birla Group. A 18.7 billion dollar metals powerhouse, Hindalco is the world's largest aluminium rolling and recycling company, and a major copper player.

It is also one of Asia's largest producers of primary aluminium. Hindalco's global footprint spans 36 manufacturing units across 10 countries. (ANI)

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