Hindalco Industries, an Aditya Birla Group company, has reported a 54 per cent increase in its consolidated (including Utkal Alumina) Q2 FY19 net profit at ₹725 crore, on the back of lower base and better realisation. In Q2 FY18, its profit had been ₹470 crore.

Revenue was up 5 per cent at ₹10,833 crore (₹10,313 crore) as EBITDA increased by a similar percentage point to ₹1,922 crore (₹1,825 crore).

The company repaid ₹1,575 crore of debt in October to deleverage the balance-sheet ahead of US-based Aleris’ acquisition for $2.58 billion. The deal is expected to be completed by next May.

Hindalco MD Satish Pai told BusinessLine the rising operation cost remains a key concern even as the demand continues to remain robust. Coal and furnace oil costs have increased by 8 per cent. Coal India, one of the largest suppliers, diverted supply to the power sector, he added.

Interest expense was down 16 per cent to ₹479 crore on re-pricing of long-term loans and debt repayments. The company’s net debt was down at ₹16,763 crore, against ₹16,893 crore as of March-end.

Revenue from the aluminium business was up 18 per cent at ₹6,135 crore (₹5,218 crore) despite production remaining flat at 3.26 lakh tonnes.

Revenue from the copper business was down at ₹4,710 crore (₹5,097 crore) due to planned shutdown at one of the smelters in July.

On standalone (excluding Utkal) basis, its net profit was down at ₹309 crore (₹392 crore) even as revenue increased to ₹10,833 crore (₹10,313 crore)

Hindalco’s US subsidiary Novelis achieved its highest-ever quarterly EBITDA of $355 million ($302 million). The company has started work to set up a new automotive facility in Changzhou, China.

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