Hindalco announces Q1 FY2015-16 unaudited standalone results

14 August 2015

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    Vs. Q1FY15
Revenue from Operations 7%

Strong PBITDA under adverse macroeconomic conditions

Financial highlights

(In Rs. crore) Q1FY16 Q1FY15 Q4FY15
Revenue from Operations 8,575 7,996 9,372
Other income 194 216 230
Profit Before Interest, Tax and Depreciation (PBITDA) 1,072 965 1,078
Depreciation 332 187 238
Finance costs 602 338 466
Profit before exceptional items and tax 138 440 374
Exceptional Items -   -   146
Profit before tax 138 440 227
Tax expenses 31 113 68
Net profit 107 328 160
Basic EPS – Rupees 0.52 1.59 0.77

Hindalco, the Aditya Birla Group flagship company, today announced its unaudited results for the quarter ended 30 June 2015.

Revenue from operations stood at Rs.8,575 crore up 7 per cent from Rs.7,996 crore in Q1 FY15 mainly on the back of higher volume despite lower commodity prices. PBITDA also rose by 11 per cent (Y-o-Y) from Rs.965 crore to Rs.1,072 crore. Other income was lower compared to Q1 FY15 due to lower yield and treasury corpus.

Depreciation and finance costs are higher, given the additional capitalisation at both the greenfield smelter complexes.

Compared to Q4 FY15, revenue from operations was lower by 8 per cent mainly on account of lower metal realisation from a sharp drop in commodity prices. However, PBITDA has been maintained at Q4 FY15 level.

Business results
Aluminium rupee LME including premium had been lower by over 5 per cent vis-à-vis Q1 FY15.

Aluminium Business contributed Rs.3,966 crore to the revenue in Q1 FY16 vs. Rs.3,011 crore in Q1 FY15 supported by higher volumes. The segment results of Aluminium Business fell from Rs.320 crore to Rs.254 crore despite higher volumes mainly because of lower realisation and the provision for renewable energy obligation.

In the Copper Business, revenue declined from Rs.4,990 crore (Q1 FY15) to Rs.4,614 crore in Q1 FY16 mainly due to 11 per cent lower copper LME. The segment results stood at Rs.344 crore vs. Rs.317 crore in the current quarter as operational performance improved, coupled with better TcRc and acid realisation.

Operational review

Alumina production (including Utkal refinery) was at 592 Kt vs. 428 Kt in Q1 FY15 and 515 Kt in Q4 FY15. The published financials does not include Utkal performance.

Metal production increased to 264 Kt vs. 190 Kt in Q1 FY15 and 242 Kt in Q4 FY15, consequent to the ongoing ramp-up at Mahan smelter and Aditya smelter.

Cathode production was at 102 Kt vs. 96 Kt in Q1 FY15 and 100 Kt in Q4 FY15.

Going forward, the operational performance is expected to be robust with the ramp-up of new facilities. Adverse metal realisation may pose a significant turbulence in the near term.

Statements in this “Press Release” describing the company’s objectives, projections, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the company’s operations include global and Indian demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in the company’s principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the company conducts business and other factors such as litigation and labour negotiations. The company assume no responsibility to publicly amend, modify or revise any forward looking statement, on the basis of any subsequent development, information or events, or otherwise.