Q4 Results: Hindalco’s Operating Profit Declines But Beats Estimates

Hindalco Industries Ltd.’s operating profit for the quarter ended March declined but surpassed analysts’ estimates due to higher domestic aluminium sales.

The company’s operating income, or earnings before interest, tax, depreciation and amortisation, fell 4.1 percent year-on-year to Rs 1,733 crore, the Aditya Birla Group’s flagship company said in an exchange filing. That compares with the BloombergQuint consensus estimate of Rs 1,340 crore.

Net profit, including that of its Utkal alumina unit, fell 17.8 percent year-on-year to Rs 506 crore. The company’s revenue rose 6.5 percent on a yearly basis to Rs 12,455 crore, while operating margin contracted 160 basis points to 13.9 percent.

Profit growth of Hindalco’s U.S. subsidiary, Aleris Corporation, rose to a five-year high in 2018, aided by demand for aluminium from automotive and aerospace industries.

Shares of Hindalco rose 2.2 percent to Rs 194.85 apiece at around 1:40 pm after the earnings announcement compared with a largely unchanged Nifty.