Hindalco reports Q1 net loss of ₹709 crore
2 min read . Updated: 14 Aug 2020, 05:17 PM IST- For the India aluminium business, Ebitda stood at ₹856 crore in Q1FY21 compared with ₹853 crore for the same quarter last year
MUMBAI: Hindalco Industries on Friday reported a consolidated net loss of ₹709 crore in the June quarter weighed down by exceptional items. The company had reported a net profit of ₹1063 crore in the year-ago period.
"Q1 consolidated PAT for continuing businesses before tax-effected exceptional and special items stood at ₹139 crore," the company said.
For the India aluminium business, earnings before interest, tax, depreciation, amortisation (Ebitda) stood at ₹856 crore in Q1FY21 compared with ₹853 crore for the same quarter last year. With smelter utilisation at 90% in the quarter, the domestic aluminium business achieved aluminium metal production of 291 kilo tonnes against 326 Kt in the year-ago period. Aluminium metal sales were at 303 kt in Q1FY21, down 5% year-on-year, due to the impact of the subdued domestic market, which was offset by higher exports.
Copper cathode production in Q1FY21 was impacted by disruptions in operations due to Covid-19, leading to lower production at 41 Kt, down 46%. With total copper metal sales lower by 29% at 58 Kt and CC rods sales down 51% at 31Kt, impacted by lower domestic demand, cathode exports were higher at 25Kt.
Its US-based subsidiary Novelis recorded a quarterly adjusted Ebitda of $253 million in Q1 against $372 million impacted by lower shipments and unfavourable product mix. However, it was partially offset by good cost control and Ebitda contribution from the acquired Aleris business.
Satish Pai, MD, Hindalco Industries, said, “I am pleased at our ability to forge ahead despite the weak post-Covid market scenario. All our aluminium India smelters operated at more than 90% capacity during the lockdown. We maintained our sales volumes, with exports accounting for nearly 80% of sales. This performance led to our Indian Aluminium Business recording an industry-high EBITDA margin."
Pai said the capital expenditure for Hindalco has been planned at ₹1500 crore for the year. Overseas expenditure will be $450 million for both Aleris and Novelis compared to earlier plan of $500 million expenditure for Novelis alone.
Hindalco is working closely with the government on how best to create products locally for import substitution, including parts for bicycles, consumer durables, refractories, the defence sector etc, Pai added.
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