Hindalco Industries Ltd's Q4FY19 standalone net profit declines 37.4% yoy to Rs236cr : Misses Estimates

The company’s standalone revenue stood at Rs12,373cr, up 5.9% yoy and 3.6% qoq.

May 16, 2019 08:05 IST India Infoline Research Team

Hindalco Industries Ltd Q4FY19

Standalone Results Q4FY19: (Rs. in cr)

Q4FY19 YoY (%)
Revenue 12,372.66 5.9
EBITDA 902.40 [28.2]
EBITDA Margin (%) 7.3 [347]
Net Profit (adjusted) 235.82 [37.4]
***EBITDA margin change is bps
Hindalco Industries Ltd's standalone numbers came in below expectations mainly on EBITDA and PAT fronts. Revenue rose by 5.9% yoy to Rs12,373cr (expectation Rs11,600cr). EBITDA stood at Rs902cr, down 28.2% yoy against estimates of Rs1,041cr. EBIDTA margin fell by 347bps yoy to 7.3%. Net Profit stood at Rs236cr against an estimate of Rs243cr.
  • Aluminium revenues (Incl. Utkal) were impacted on account of lower realisations. Margins declined by 54bps yoy on account of stronger rupee and lower realisations.
  • Production for the Aluminium segment in Q4FY19 stood at:
    • Alumina (Including Utkal)– 749k tonnes, up ~5% yoy
    • Aluminium– 321k tonnes, flat yoy
    • VAP – 120k tonnes, up 2% yoy
  • Production for the copper segment in Q4FY19 stood at:
    • Cathodes – 89k tonnes, down ~15% yoy
    • CC Rod –62k tonnes, up ~41% yoy. Ramp up of CCR-3 facility. CCR-3 production was at 117k tonnes
    • DAP – 69k tonnes, up ~130% yoy
  • Novelis reported flattish revenue on yoy basis. Adjusted EBITDA stood at $357mn, up ~12% yoy. Adjusted EBITDA per tonne stood at USD411 (vs. USD397 in Q4FY18), up 3% yoy.

Technical View:

Hindalco Industries Ltd is currently trading at Rs. 193, up by 2.15 points or 1.13% from its previous closing of Rs. 190.85 on the BSE.
The scrip opened at Rs. 191.25 and has touched a high and low of Rs. 194.75 and Rs. 190.05 respectively. So far 75,37,459 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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