Hindalco Industries drops after weak Q3 results

Hindalco Industries lost 3.43% to Rs 99.95 at 15:10 IST on BSE after net profit declined 23.04% to Rs 334 crore on 5.83% growth in revenue from operations to Rs 7273 crore in Q3 December 2013 over Q3 December 2012.

The Q3 result was announced during trading hours today, 13 February 2014.

Meanwhile, the S&P BSE Sensex was down 243.26 points or 1.19% at 20,205.23.

On BSE, so far 13.71 lakh shares were traded in the counter, compared with an average volume of 9.07 lakh shares in the past one quarter.

The stock hit a high of Rs 104.55 and a low of Rs 99.80 so far during the day. The stock hit a 52-week low of Rs 83.05 on 7 August 2013. The stock had hit a 52-week high of Rs 126.75 on 11 December 2013.

The stock had underperformed the market over the past one month till 12 February 2014, sliding 6.29% compared with the Sensex's 1.49% fall. The scrip had also underperformed the market in past one quarter, declining 6.92% as against Sensex's 0.82% rise.

The large-cap company has equity capital of Rs 206.46 crore. Face value per share is Re 1.

Hindalco Industries' EBITDA (earnings before interest, taxation, depreciation and amortization) declined 7.33% to Rs 834 crore in Q3 December 2013 over Q3 December 2012. EBITDA before non-recurring income rose 10.31% to Rs 834 crore in Q3 December 2013 over Q3 December 2012.

Hindalco Industries' net profit fell 6.44% to Rs 334 crore on 15.35% growth in revenue from operations to Rs 7273 crore in Q3 December 2013 over Q2 September 2013.

Of the total revenues of Rs 7273 crore, Aluminium Business contributed Rs 2471 crore as against its contribution of Rs 2343 crore in Q2 September 2013. Aluminium sales were higher on the back of higher volume despite realisation being lower, Hindalco said. Quarterly aluminium production at 158 Kt has been highest ever, it added.

Revenue from Copper Business rose 21% to Rs 4817 crore in Q3 December 2013 over Q2 September 2013 driven by higher copper LME and by-product realisation. Cathode production was 89 Kt in Q3 December 2013 as against 84 Kt in Q2 September 2013. Copper Business delivered highest ever EBIT of Rs 300 crore in Q3 December 2013, Hindalco said in a statement.

Hindalco said that improved operating efficiencies cushioned the adverse impact of higher input cost and lower realisation. Net profit has been lower due to higher effective tax rate for the quarter, the company said in a statement.

Hindalco said that the company's Greenfield projects are ramping up well. Mahan smelter produced 18 Kt of aluminium metal and Utkal Alumina International produced 87 Kt of Alumina in Q3 December 2013. The first metal has been produced at Aditya smelter in January 2014, the company said in a statement.

Hindalco Industries is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world's largest custom smelter at a single location.

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