Hindalco Industries lost 0.31% to Rs 192.95 after consolidated net profit fell 23.81% to Rs 1,062 crore in Q3 December 2019 (Q3 FY20) as against Rs 1,394 crore reported in Q3 December 2018 (Q3 FY19).
Revenue from operations dropped 12.09% year-on-year (Y-o-Y) to Rs 29,197 crore in Q3 FY20. Profit before tax fell 23.30% to Rs 1,481 crore Y-o-Y. EBITDA stood at Rs 3,676 crore, sliding 10% over corresponding period of the last year. The Q3 numbers were declared during market hours today, 12 February 2020.
The company's foreign unit, Novelis Inc, delivered a continued strong operational and financial performance in Q3 FY20. Total shipments of of flat rolled products (FRPs) were at 797 Kt, which is flat year-on-year. Beverage can sheet and automotive body sheet shipments, however, were higher by 4% and 3% respectively, driven by growing consumer preference for sustainable packaging and light-weight vehicles. Novelis recorded its highest Q3 EBITDA of $343 million, a growth of 7% over the prior year. Adjusted EBITDA per ton was $430 in Q3 FY20, up 7% year-on-year. Novelis reported a net income (excluding tax-effected special items) of $132 million in Q3 FY20, an increase of 31% over Q3 FY19. Revenue was down 10% year-on-year at $2.7 billion in Q3 FY20, mainly due to a decline in average base aluminium prices and local market premiums, partly offset by favourable recycling benefits.
Speaking on the results, Satish Pai, the managing director of Hindalco Industries, has stated that, For the past few years, Hindalco has continuously focused on improving plant operations. These efficiencies have helped us stay strong and steady amid weak markets. Despite global conditions, Novelis showed an increase in can and auto sheet shipments, spurred by growing consumer preference for sustainable packaging options and automotive closed-loop recycling systems. In Q3 FY20, 80% of our consolidated EBITDA was non-LME linked. These trends bear out our focus on building our downstream, value-added portfolio, both for domestic and international markets. All our strategic expansion projects in India and Novelis are on track. In January 2020, Novelis successfully issued US$ 1.6 billion bonds at attractive rates, reflecting the recognition and confidence in Hindalco-Novelis.
Hindalco Industries is engaged in the production of aluminium and aluminium products, and copper & copper products. The company's segments include aluminium, which includes hydrate and alumina, aluminum and aluminum product, and copper, which includes continuous cast copper rods, copper cathode, sulfuric acid, di-ammonium phosphate (DAP) and complexes, and gold & silver products.
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