The company has posted a net profit of Rs 439.7 crore for the quarter ended September 30, 2016 as compared to Rs 123.5 crore for the quarter ended September 30, 2015. Total Income has decreased from Rs 10,020.9 crore for the quarter ended September 30, 2015 to Rs 9,898.3 crore for the quarter ended September 30, 2016.
The company registered revenues of Rs 9,562 crore, PBITDA (Profit before Interest, Tax, Depreciation and Amortisation) was up 39% at Rs 1,493 crore and Net Profit jumped 255% to Rs 440 Crore.
• Aluminium production increased 19% to 321 KT(Kilo Tonne), significant cost efficiencies achieved across the plants.Inputs costs were largely supportive thoughcrude derivative prices hardened sequentially.
• Aluminium Value Added Products (FRP and Extrusions) – up 8%, Wire Rod Production increased 36% reflecting the Company’s focus on power and other growth sectors.
• Delivered highest ever quarterly Copper production at 106 KT,after successful planned annual maintenance shutdown. Improved efficiencies helped offset sharp decline in sulphuric acid prices.
Revenues for the quarter were broadly stable, as the impact of higher aluminium revenues was largely negated by a sharp decline in copper realisation. YOY, aluminium revenues were higher by almost 10% (excluding Utkal and Y-O-Y and if we include Utkal it is 9%)on the back of strong volume growth, however a9% drop in copper revenues negated this increase. The copper revenues declined due to decline in copper LME, along with lower premium and lower co-product prices (sulphuric acid and DAP).
The average LME (USD) for aluminium was mildly supportive (up by 2% YoY) along with a weaker Rupee; the local market premium was sharply lower (down 34%). The copper LME was lower by 10% vs. Q2FY16. Continued surge in imports of aluminium in the country also adversely affected the results.
The cost of most inputs continued to remain benign, though prices of crude derivatives increased marginally with a rise in crude prices. Coal cost increased marginally due toa decline in quality during the monsoon season. Alumina costs were also higher for standalone Hindalco as the transfer price is linked to alumina index prices, which rose sequentially. However, this price increase benefitted Utkal Alumina International Limited, the wholly owned unlisted subsidiary of the Company.
Y-O-Y, quarterly PBITDA at Rs 1,493crore was higher by 39%. This reflects a robust operational performance, not with standing the macro- economic headwinds. Depreciation and finance charges at Rs 946crore against Rs 926crorein Q2FY16 were marginally higher. Profit before tax for the quarter at Rs 547crore (before exceptional items) was much higher than that in the corresponding quarter of the previous year driven by strong operational gains.Net profit for Q2FY17at Rs 440crore, was significantly better than that in Q2FY16.
Compared to Q1FY17, Revenues from Operations were up by 17% mainly on account of higher volumes in both aluminium and copper segments. PBITDA rose11% led by the copper segment’s enhanced performance. Sequentially, Net Profit rose 50%.
Following a notification issued by the Ministry of Coal making applicability of contribution to District Mineral Foundation effective retrospectively from 12th January, 2015, a one-time provision of Rs 60 crore has been made during the current quarter and is included in exceptional items.
Hindalco has adopted Indian Accounting Standards (Ind –AS wef. April 1, 2016 as mandated by the Ministry of Corporate Affairs. Figures for comparable period have been revised to comply with Ind-AS.