Hindalco Industries Ltd's Q1FY19 standalone net profit rises 15.7% yoy to Rs414cr: Beats Estimates

The company’s standalone revenue in the period stood at Rs10,593cr, up 1.7% yoy but down 9.3% qoq.

Aug 10, 2018 09:08 IST India Infoline Research Team

Hindalco Industries Ltd Q1FY19

Standalone Results Q1FY19: (in Rs cr)

Q1FY19 YoY (%)
Revenue 10,593 1.7
EBITDA 1,325 15
EBITDA Margin (%) 12.5 144
Net Profit (adjusted) 414 15.7
***EBITDA margin change is bps

Hindalco Ltd beat its estimates due to a strong performance from the aluminum business. Revenue rose 1.7% yoy to Rs10,593cr against the expectation Rs11,019cr. EBITDA stood at Rs1,325cr, up 15% yoy against the estimates of Rs1,270cr. EBIDTA margin rose 144bps yoy to 12.5%. Net profit stood at Rs414cr against an estimate of Rs420cr.
  • Production for the aluminum segment in Q1FY19 stood at:
    • Alumina – 695,000 ton, down 4% yoy. This was due to the planned shutdown of one of the alumina refineries.
    • Aluminum – 323,000 ton, up 0.6% yoy.
    • VAP – 113,000 ton, down 2.6% yoy.
  • Production for the copper segment in Q1FY19 stood at:
    • Cathodes – 81,000 ton, down 25.7% yoy. This was due to the shutdown of smelting operations for 22 days.
    • CC Rod – 61,000 ton, up 56.4% yoy.
    • DAP – 70,000 ton, up 4.5% yoy.
  • Aluminium segment reported EBITDA of Rs1,532cr (expectation Rs1,220), up 35% yoy. This was due to higher realizations.
  • Copper segment reported EBITDA of Rs33cr (expectation Rs310), up 4% yoy. This was due to higher realizations for Sulphuric acid and DAP.
  • Standalone results (including Utkal) for Q1FY19 stood at:
    • Revenue – Rs10,670cr (up 2.5% yoy)
    • EBITDA – Rs1,951cr (up 17% yoy)
    • PAT – Rs734cr (up 102% yoy)
  • Novelis reported a strong quarter where revenue grew 16% yoy to $3,097mn. EBITDA stood at $339mn, up 14.5% yoy. EBIDTA margin fell 14bps yoy to 10.9%. Net profit stood at $137mn, an increase of 35.6% yoy. For details, click here.

Technical View:

Hindalco Industries Ltd is currently trading at Rs222.40, down Rs5.05, or 2.22%, from its previous close of Rs227.45 on the BSE.
The scrip opened at Rs229.95 and has touched a high and low of Rs229.95 and Rs220.10, respectively. A total of 1,40,36,153 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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