Hindalco bucks trend after Q2 earnings

Hindalco Industries rose 0.10% to Rs 151.80 at 14:35 IST on BSE after profit before tax and exceptional items rose 22.50% to Rs 539 crore in Q2 September 2014 over Q2 September 2013.

The result was announced during trading hours today, 13 November 2014.

Meanwhile, the BSE Sensex was down 151.64 points, or 0.54%, to 27,857.26.

On BSE, so far 11.11 lakh shares were traded in the counter, compared with an average volume of 9.02 lakh shares in the past one quarter.

The stock hit a high of Rs 154.50 and a low of Rs 149.60 so far during the day. The stock hit a 52-week high of Rs 198.70 on 25 July 2014. The stock hit a 52-week low of Rs 96.95 on 24 February 2014.

The stock had underperformed the market over the past one month till 12 November 2014, rising 0.97% compared with 6.51% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 18.31% as against Sensex's 8.22% rise.

The large-cap company has an equity capital of Rs 206.49 crore. Face value per share is Re 1.

Hindalco Industries' net profit fell 77.94% to Rs 78.77 crore on 33.30% increase in total income to Rs 8777.66 crore in Q2 September 2014 over Q2 September 2013.

The company's earnings before interest taxes depreciation and amortization (EBITDA) rose 66.11% to Rs 897 crore in Q2 September 2014 over Q2 September 2013.

Net sales rose 35.67% to Rs 8554 crore in Q2 September 2014 over Q2 September 2013. Higher sales reflect increased volume and higher realisation in both aluminium and copper businesses.

Profit before interest, depreciation and tax (PBITDA) rose 36.59% to Rs 1120 crore in Q2 September 2014 over Q2 September 2013. PBITDA for the quarter improved despite a sharp surge in the cost of coal.

The net profit was impacted by exceptional item of Rs 431 crore (net) in Q2 September 2014.

Exceptional items (net) included Rs 563 crore towards additional levy of Rs 295 per MT on coal extracted by the company from the commencement of the production of coal from Talabira I mine in fiscal year ended March 2014 (FY04) up to September 2014 in compliance with the order dated 24 September 2014 of the Supreme Court of India.

Provision of Rs 258 crore towards diminution in carrying value of investment in Aditya Birla Minerals, Australia, a subsidiary of the company, arising on significant decline in value of the company's investments therin as rreflected in decline in its quoted share price over a considerable period of time.

Reversal of Rs 29 crore out of the liability provided for in the previous year on account of UP Tax on Entry of Goods into Local Area Act, 2007 (UP Entry Tax), following completion of assessment.

Foreign exchange gain of Rs 361 crore in connection with receipt of Rs 1394 crore from A V Minerals (Netherlands) N. V., a wholly-owned subsidiary of the company, towards return of capital by reducing nominal value of shares.

Hindalco-Novelis a part of Aditya Birla Group is the aluminium rolling company. It is one of the three biggest producers of primary aluminium in Asia with the largest single location copper smelter.

Powered by Capital Market - Live News