Hindalco surges 10% on strong operational performance in Q4

The company reported a standalone net profit of Rs 356 crore in Q4FY16, against Rs 160 crore in a year ago quarter.

Hindalco Industries has surged 10% to Rs 101 on the BSE in early morning trade after the company reported standalone net profit of Rs 356 crore for the quarter ended March 2016 (Q4FY16) due to lower input costs. The company had registered a profit of Rs 160 crore in the year ago quarter.

Operational revenues however declined 7.5% at Rs 8,668 crore against Rs 9,372 crore in the corresponding quarter of previous fiscal, due to sharp decline in aluminium and copper realisations.

Ebitda (earnings before interest, taxes, depreciation and amortization) margins improved to 4.1% in Q4FY16 from 1.7% in Q4FY15 and 0.49% in Q3FY16, on account of higher aluminium volumes and lower input costs.

“This improvement was primarily on the back of higher volumes, aided by improved realizations. The cost pressure abetted significantly on account of lower energy costs, especially coal and thissaw us deliver a strong performance,” Hindalco Industries said in a statement.

At 09:49 AM, the stock was up 9% at Rs 100 on the BSE compared to 0.36% rise in the S&P BSE Sensex. The counter has seen huge trading volumes with a combined 12.67 million shares changed hands so far against an average nine million shares that were traded daily in past two weeks on the BSE and NSE.