Kumar Mangalam Birla-led Hindalco Industries reported a 54% jump in its second quarter consolidated net profit to ₹725 crore on lower finance costs and higher realisations.
However, on a stand-alone basis, the profit fell 21.37% to ₹309 crore on account of higher input costs.
The higher consolidated profit came on a 5% growth in revenue and EBITDA to ₹10,833 crore and ₹1,992 crore respectively.
The performance came on the back of supporting macros, improvement in operational efficiencies and better realisation. This was despite increase in input costs, mainly of coal and furnace oil, the company said in a statement, adding that the interest expense was lower by 16% at ₹479 crore, mainly on account of re-pricing of long-term project loans and loan re-payments made last year.
Revenues from aluminium during the quarter grew by 18% to ₹6,135 crore, accounting for 57% of the total revenues while revenues from copper segment fell by 7.6% to ₹4,710 crore on account of lower volumes due to a planned maintenance shutdown at one of the smelters in the month of July-18 and also due to lower copper realisations.
Commenting on the results, Satish Pai, managing director, Hindalco Industries said, “The company delivered yet another strong quarterly results, despite the challenging business environment, rising input costs and surge in imports. We continue to focus on strengthening our balance sheet, resource securitisation and our strategy to grow in the downstream businesses to deliver long-term shareholder value.”
Hindalco’s overseas arm Novelis, reported net income $116 million for the second quarter of fiscal year 2019, compared to $307 million in the prior year period.
“Excluding tax-effected special items in both periods, the largest item being a $318 million pre-tax gain related to the Ulsan Aluminum Ltd., joint venture in the prior year, the company reported net income of $122 million in the second quarter of fiscal 2019, up from $78 million in the prior year period,” said Novelis in a statement.
Hindalco’s net debt to EBITDA improved to 2.47x from 2.67x as on September 30, 2018 . The company prepaid another ₹1,575 crore in the month of October 2018 .
Hindalco Industries shares on BSE closed up 4% at ₹240.35 in a firm Mumbai market on Friday.
