Hindalco Industries reported a 33% fall in its second quarter consolidated net profit to ₹974 crore due to fall in aluminium prices.
The fall in profit was reported on a 9% decline in revenue to ₹29,657 crore.
Satish Pai, MD, Hindalco Industries, said, “Stronger operational efficiencies in upstream business and our rising share of value-added products have led to a stronger and derisked business model. Globally, consumer demand for sustainable packaging options and automotive closed-loop recycling systems continues to grow. A special call out to Novelis which has once again turned in a record performance.”
When asked about falling demand in the Indian business, Mr. Pai said, “We have seen lots of announcements so far but we are not yet seeing orders coming. Post-Diwali, we are yet to see demand picking up. November to March will be a crucial time for us.”
The company’s EBITDA for the quarter fell by 8% to ₹3,918 crore.
The company is in talks with two prospective European buyers to sign a definitive agreement for sale of Aleris Corp.’s Belgium plant to get approval for the $2.6 billion deal.
“Novelis received conditional approval for the Aleris acquisition from the European Union, and a clear path forward for approval in the U.S. The company expects to close the transaction by January 21, 2020, the outside date under the merger agreement,” the company said in a statement.
Hindalco’s gross consolidated debt stood at ₹54,154 crore and net debt at 40,710 crore. When asked about the debt reduction, Mr. Pai said, “At current LME prices, we won’t repay any debt. We will continue with our capex of ₹2,000 crore.”
