Hindalco Industries Ltd's standalone numbers came in below expectations. Revenue declined by 5.1% yoy and 18.7% qoq to Rs10,055cr (median consensus expectation Rs10,791cr). EBITDA stood at Rs717cr, down 45.9% yoy and 20.5% qoq against median consensus estimates of Rs954cr. EBIDTA margin contracted by 538bps yoy and 16bps qoq to 7.1%. Net Profit stood at Rs23cr against an median estimate of Rs162cr.
There were exceptional items during the quarter related to Profit on sale of Company's aluminium foil manufacturing unit (Rs25cr) and expenses incurred towards restoration of Red Mud Pond and other related expenses in alumina refinery at Muri, Jharkhand (Rs47cr) resulting in net exceptional expenses of Rs22cr. Adjusting for these, the PAT would have been Rs37cr for Q1FY20.
Aluminium revenues (incl. Utkal) came in it at Rs5,472cr, down 3.5% yoy, impacted by lower realisations. Margins declined from 27%/17.8% in Q1FY19/Q4FY19 to 16.2% in Q1FY20. EBITDA margins are one of the best amongst global peers as per the company release.
Production for the Aluminium segment in Q1FY20 stood at:
Alumina (including Utkal)– 686 tonnes, down 1.3% yoy and 8.4% qoq. Alumina production was impacted by Muri plant closure which was partially mitigated by higher production at Utkal Alumina
Aluminium– 326k tonnes, up 1%/2% yoy and qoq
VAP – 79k tonnes, up 1% yoy
Sales Volume – Aluminium Metal & VAP
Aluminium Metal sales higher by 7% yoy
Aluminium VAP shipments has grown 13% yoy
Aluminium VAP was 24% of total metal sales (vs. 23% in Q1FY19)
Production for the copper segment in Q1FY20 stood at:
Cathodes – 79k tonnes, down ~6% yoy impacted due to the planned maintenance shutdown in Q1FY20
CC Rod –66k tonnes, up ~2% yoy
DAP – 36k tonnes, down ~49% yoy due to planned maintenance shutdown and operational issues
Sales Volume – Copper & VAP
The total copper metal sales remained steady at 82k tonnes in Q1 FY20 vs Q1 FY19
Revenue from the Copper Business was at Rs4,593cr in Q1FY20 vs. Rs5,012cr in Q1FY19
EBITDA was lower at Rs267cr in Q1FY20 compared to Rs347cr in Q1FY19, due to lower by-product volumes and realisations
Hindalco Industries Ltd is currently trading at Rs. 177.55, down by 3.5 points or 1.93% from its previous closing of Rs. 181.05 on the BSE.
The scrip opened at Rs. 182 and has touched a high and low of Rs. 184.25 and Rs. 176 respectively. So far 96,03,923 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.
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