Continuing Rebound in Aluminium Prices Boost Hindalco’s Q3 Net Profits by 17 Percent

Aditya Birla Group’s aluminium arm Hindalco Industries Ltd. released results for the just-ended third quarter of fiscal year 2018 late last week. The firm’s financials were markedly improved in the quarter thanks to the recovery of aluminium prices among other factors.

The firm’s revenues in the quarter of INR11,023 crore were up quarter-on-quarter from last quarter’s total of INR10,308 crore and up year-on-year from last year’s third-quarter total of INR9,915 crore. Hindalco credits an increase in volumes and by-product realization for the improvement.

EBITDA in the quarter totaled INR1,611 crore, also up from the previous quarter’s total of INR1,577 crore and improved upon last year’s third-quarter EBITDA of INR1,405 crore. Higher volumes offset higher input costs in the quarter to drive the quarter’s EBITDA to a 15-percent rise over the previous year.

Net profit in the quarter totaled INR376 crore, down slightly from the previous quarter’s total of INR393 crore, but an improvement from last year’s third-quarter total of INR320 crore.

Higher sales and an increased realization boosted aluminium sales in the quarter, totaling INR5,323 crore. Increased metal prices and volumes propelled EBITDA for the company’s aluminium business to a 7-percent rise year-on-year to INR940 crore. Production in the quarter of aluminium totaled 323 thousand metric tons, alumina production totaled 734 thousand metric tons, and value-added products totaled 123 thousand metric tons, the latter showing a 3-percent gain year on year.

Hindalco’s managing director Satish Pai noted that aluminium price increases was one of several factors boosting his firm’s numbers in the quarter.

“Our net increased 17 per cent due to firm aluminium prices, by-product realisation and cost effective operations during quarter. We also witnessed 10 per cent jump in demand for both aluminium and copper.”

Pai went on to say that Hindalco plans to invest another INR500 crore in the coming fiscal year to complete the alumina refinery at Utkal. The INR1,300-crore project is slated to reach completion within the next two years.



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