Industry

Hindalco profit drops 18% to ₹506 cr. on high input costs

Board recommends dividend of 120%; overseas arm Novelis’s profit rises 11% to $468 million

Hindalco Industries reported a 17.85% drop in its fourth quarter net profit to ₹506 crore primarily on weaker macros and higher input costs during the last quarter. The fall in profit was reported on a 6.57% jump in revenue to ₹12,455 crore.

EBITDA during the quarter dropped 4% to ₹1,733 crore as margins declined to 10.80% during the quarter from 13.90% in Q4FY18.

For FY19, the company’s consolidated net profit fell to ₹5,495 crore from a net profit of ₹6,083 crore reported the previoys year. The drop in profit came on a 12.7% growth in revenue to ₹1,30,542 crore.

Commenting on the results, Satish Pai, managing director, Hindalco Industries said, “This resilient performance reflects the strength of our integrated business model, excellent operational capabilities, stable operations and our enriched product portfolio. In India, our increased focus on downstream is already showing encouraging results with record aluminium value added product volumes this year. In copper too, the share of value-added products (copper rods) has risen, helping business maintain profitability despite lower volumes.”

The board recommended a dividend of 120% i.e. ₹1.20 per equity share of face value of ₹1 each for the financial year ended March 31, 2019, subject to approval of the shareholders at the ensuing annual general meeting.

Hindalco’s overseas arm Novelis Inc. reported an 11% jump in its fourth quarter net profit to $468 million, said the company in a statement, adding that the automotive expansion projects for Novelis in the U.S. and China are expected to be commissioned in FY21 and the expansion projects for additional rolling and recycling capacity at Novelis Brazil are also likely to be commissioned in FY21.

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Printable version | May 28, 2020 1:42:41 AM | https://www.thehindu.com/business/Industry/hindalco-profit-drops-18-to-506-cr-on-high-input-costs/article27153377.ece

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