Aditya Birla Group’s flagship metals company Hindalco Industries on Friday posted an 11% year-on-year decline in its standalone net profit at Rs 393 crore for the three months ended September 2017, missing the Bloomberg estimate of Rs 495 crore. The reported net profit came in after factoring in net exceptional provisioning of Rs 106 crore, based on various recent judgments pronounced by the Supreme Court. However, boosted by higher aluminium volumes and improved realisation in copper and aluminium segments, revenue from operations was up more than 14% to Rs 10,308 crore, though below estimates of Rs 10,716 crore. EBITDA (earnings before interest, tax, depreciation and amortisation) for July-September stood at Rs 1,390 crore (excluding treasury income), up 20% y-o-y on account of higher aluminium volumes and supportive macro factors, though partly offset by higher input costs and lower volumes in copper segment. Depreciation rose by 8% y-o-y due to progressive capitalisation. Interest expense for the quarter was lower by 19% given prepayment of loans. The company pre-paid Rs 7,966 crore of loan till date in FY18. Satish Pai, managing director, said the company’s consolidated net debt including Novelis stood at Rs 44,318 crore as on September 30, against Rs 46,549 crore at the end of March 31.
Meanwhile, Novelis Inc, a wholly owned subsidiary, registered an increase of 18% in net sales to $2.8 billion, supported by all-time record quarterly shipment of 802 kilotonne, up 4% y-o-y, including a 12% increase in shipments of automotive products and higher average aluminium prices.
Adjusted EBITDA (excluding metal price lag) increased 12% y-o-y to $302 million in the quarter under review. This was primarily because of higher shipments, favourable metal costs and operational efficiencies, partially offset by lower beverage can pricing. Adjusted Ebitda reached $377 per tonne in the quarter.
Novelis completed its joint venture transaction with Kobe Steel during the quarter by selling approximately 50% of its ownership interest in its facility in Ulsan, South Korea. It received $314 million in cash for the transaction.
Novelis reported a net income of $307 million for Q2FY18, compared with a net loss of $89 million in the previous year. Excluding tax-affected special items in both years, the reported net income was at $78 million in Q2FY18, up from $60 million in Q2FY17.