Hindalco Industries (Q2 FY14)
India Infoline News Service | Mumbai |
Standalone revenue of Rs63bn was higher by 2.3% yoy and 8% qoq, but lower than our estimate of Rs66.7bn.
CMP Rs114, Target Rs129, Upside 13.4%
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Hindalco’s standalone operational numbers were inline with our estimate as the impact of lower aluminium business EBIT was offset by strong copper EBIT
-
Copper production was lower by 1.3% yoy and that of aluminium was higher by 1.8% yoy
-
Operating profit of Rs5.4bn was marginally higher than our estimate
-
Novelis reported inline numbers as the impact of lower volumes in North America was offset by jump in volumes in South America and Asia
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Earnings growth to resume in FY15, Maintain Buy with a price target of Rs129.
| (Rs mn) |
Q2 FY14 |
Q2 FY13 |
% yoy |
Q1 FY14 |
% qoq |
| Net sales |
63,049 |
61,635 |
2.3 |
58,379 |
8.0 |
| Material costs |
(40,072) |
(39,985) |
0.2 |
(36,707) |
9.2 |
| Power and fuel costs |
(8,822) |
(8,065) |
9.4 |
(8,062) |
9.4 |
| Personnel costs |
(3,608) |
(3,129) |
15.3 |
(3,024) |
19.3 |
| Other overheads |
(5,148) |
(5,304) |
(2.9) |
(5,801) |
(11.3) |
| Operating profit |
5,398 |
5,153 |
4.8 |
4,785 |
12.8 |
| OPM (%) |
8.6 |
8.4 |
20 bps |
8.2 |
37 bps |
| Depreciation |
(1,964) |
(1,728) |
13.7 |
(1,831) |
7.3 |
| Interest |
(1,832) |
(279) |
557.5 |
(1,487) |
23.2 |
| Other income |
2,798 |
1,324 |
111.4 |
4,279 |
(34.6) |
| PBT |
4,401 |
4,471 |
(1.6) |
5,746 |
(23.4) |
| Tax |
(830) |
(882) |
(5.9) |
(1,005) |
(17.4) |
| Effective tax rate (%) |
18.9 |
19.7 |
|
17.5 |
|
| Adjusted PAT |
3,571 |
3,589 |
(0.5) |
4,741 |
(24.7) |
| Adj. PAT margin (%) |
5.7 |
5.8 |
(16) bps |
8.1 |
(246) bps |
| Reported PAT |
3,571 |
3,589 |
***Note: This is a
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