Hindalco Q1 profit drops 28 pc to Rs 1,063 cr

Aditya Birla Group flagship firm Hindalco Industries on Friday posted 27.9 per cent decline in consolidated profit at Rs 1,062.89 crore for June quarter 2019 on the back of lower commodity prices and the global downturn.

The company had posted a profit of Rs 1,474.69 crore in the year-ago period, Hindalco Industries said in a filing to BSE.

Revenue from operations in April-June dropped to Rs 30,268.20 crore from Rs 31,205.61 crore in the year-ago period.

"While profits were impacted by the global downturn and lower commodity prices, Hindalco held its ground and delivered a steady performance," the company said in a statement.

"We continued to maintain our strong position in aluminium and copper in Q1 FY'20 despite headwinds. The resilient performance owes as much to our backward integration, resource security, strong balance sheet, operational capabilities and rich product portfolio," Hindalco Industries Managing Director Satish Pai said.

"Today, 79 per cent of Hindalco's consolidated EBITDA is non-LME linked, reflecting a balanced and sustainable business model, which will serve us well in all market conditions," Pai said.

Novelis led from the front to achieve record quarterly results, and the Indian businesses put up a resilient show amid subdued economic conditions, the company said.

"Profit After Tax was at Rs 1,063 crore in Q1 FY20 compared to Rs 1,475 crore in the corresponding quarter last year," the statement said.

The company further said all regulatory approvals for the Aleris acquisition continue to progress and are expected to close in the third quarter of 2019-20.

Utkal Alumina's brownfield capacity expansion is on track and is expected to be operational by the middle of 2020-21 financial year.