You are here: Home » Companies » Results
Business Standard

Hindalco consolidated third quarter profit soars 77% to Rs 1,877 cr

The jump was mainly driven by strong performance by Novelis and India aluminium business

Topics
Hindalco | Q3 results | Aditya Birla Group

Press Trust of India  |  Mumbai 

hindalco
Hindalco | Represenational image

Industries on Wednesday reported 76.74 per cent growth in consolidated profit after tax (PAT) at Rs 1,877 crore during the quarter ending December 31, 2020, compared to the same quarter of the previous financial year mainly driven by strong performance by Novelis and India aluminium business.

The company's PAT during the third quarter of 2019-20 stood at Rs 1,062 crore, said in a BSE filing.

The consolidated revenue from operations of for the quarter under review went up by 19.73 per cent to Rs 34,958 crore compared to Rs 29,197 crore in the corresponding quarter of FY20.

The strong third quarter is due to robust performance by Novelis and domestic aluminium business, which was supported by higher volumes and better product mix, lower input costs, stability in operations and cost saving actions, Hindalco Industries Managing Director Satish Pai told reporters in a virtual press conference.

"The demand has been back globally during the third quarter to the pre-COVID levels in every sector. Novelis achieved record shipments, driven by strong demand across product end markets. The India business delivered an excellent performance with aluminium value-added products continuing to record higher volumes," Pai added.

Going forward, he stated that the vaccination is being rolled out, which will give further confidence so the company is quite bullish on the demand for the next financial year.

In the last quarter of FY21, Pai said "Q4 demand a million tonnes of aluminium is more or less where the capacity demand is currently. So, in Q4 the demand will be at the Q3 levels."

Talking about prices, Pai stated that it is dependent on LME (London Metal Exchange) and is currently trading at USD 2,000 per tonne level and is expected to be in the USD 1,900-2,000 tonne level during the fourth quarter.

Further, he said, the inclusion of the Aleris business has positively impacted the overall top line and EBITDA, with realisation of synergies at USD 54 million on a run-rate basis in the third quarter.

Meanwhile, the company is planning to come out with a capital allocation strategy soon, Pai stated without elaborating on the amount.

"We believe that cash flow generation is going to be good. So we are going to sort of describe how we will invest that money into a growth capex to reduce our net debt, as well as distribution to shareholders. So this capital allocation strategy will be laid out in the coming weeks," he said.

The standalone net debt of Hindalco is Rs 14,800 crore and that for Novalis is Rs 47,500 crore.

Shares of the company ended 0.38 per cent higher at Rs 279.35 apiece on BSE.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, February 10 2021. 17:49 IST
RECOMMENDED FOR YOU
.