Hindalco Q2 profit seen 9% higher at Rs 477 cr; LME rally to boost results: Poll
The net sales are likely to be higher by 9 perent at Rs 10,409 crore against Rs 9,562 crore.
Moneycontrol News
Aluminium major Hindalco is likely to report a 9 percent increase in its September quarter profit at Rs 477 crore, a poll of analysts by CNBC-TV18 said. The company had reported profit at Rs 439 crore in the previous year.
The net sales are likely to be higher by 9 perent at Rs 10,409 crore against Rs 9,562 crore.
At an operating level, the operating income is seen higher by 16 percent at Rs 1,645 crore against Rs 1,157 crore, while the margin could be higher at 12.9 percent against 12.1 percent year on year.
One of the factors, experts believe, is that Hindalco results could be supported by rally in LME.Base metal prices have increased on a year on year basis and copper, specifically, has risen by 33 percent.
Moreover, higher realization and volumes will lead to strong results, while aluminium volumes are expected to be at 322kt, driven by optimum output at all smelters.
Having said that, these gains could be partially offset by higher input costs, increase in coal and carbon-relate cost, rise in alumina transfer price and hedging losses, among others.
The key issues to watch for the company could be lower margins in aluminum and forex rate impact at Novelis.
