Hindalco Industries, the Aluminium major, turned profitable in the quarter ended 31st December 2016, with net income on standalone basis at Rs 320.56 crores against loss of Rs 32.49 crores in year-ago quarter, aided by strong operational performance as well as low base.
Revenue of the company during the quarter grew by 13.8 per cent to Rs 9,914.8 crores compared with Rs 8,715.9 crores in same quarter last year, driven by increase in average realization for both copper and aluminium, along with weaker rupee and higher aluminium volumes. Aluminium business in Q3 increased 8.6 per cent year-on-year to Rs 4,916.9 crores, with its EBIT (earnings before interest and tax) growing 147.4 per cent to Rs 875.8 crores driven by higher realisation.
Copper segment revenue jumped 19.3 per cent to Rs 5,000.4 crores but its EBIT fell 6.4 per cent to Rs 329.5 crores, impacted by lower demand in domestic market and lower by-products realisation (sulphuric acid and diammonium phosphate). Operating profit shot up 75.5 per cent to Rs 1,185 crores and margin expanded by 420 basis points to 11.9 per cent compared with year-ago quarter, majorly aided by aluminium business and lower power & fuel cost that dropped 13.2 per cent to Rs 1,429.5 crores. Earnings barring topline missed analysts' expectations. Profit was expected at Rs 415 crores on revenue of Rs 9,280 crores and operating profit was estimated at Rs 1,240 crores with margin at 13.36 per cent for the quarter.
In terms of EBIT margin per tonne for the aluminium business the company has delivered 17.8 per cent which is higher than the estimate of 11.7 per cent.