Q3 performance: Value-added products to drive Hindalco's earnings

Investment in high-return projects to drive growth

Hindalco delivered a strong performance in the December quarter (Q3), helped by higher base metal prices, favourable product mix and debt reduction measures. However, rising raw material costs led to operating profit missing the estimates slightly, mainly due to increased price of linkage coal. Though, improved revenue mix in favour of value-added products should keep driving Hindalco’s operating performance going ahead. Besides, as most of the company’s capex is over, higher profits should reduce debt and drive earnings further. 

For Q3, Hindalco’s standalone revenue grew 11.2 per cent year-on-year (y-o-y) to Rs 11.02 billion, driven by aluminium and copper segments. Copper