Hindalco Q3 profit including Utkal surges 47% to Rs 713 cr, margin contracts

 third quarter profit (including Utkal) to Rs 713 crore, driven by higher operating income and lower finance cost in aluminium business.

Hindalco has reported healthy 47 percent on year growth in

Profit during the quarter ended December 2017 stood at Rs 484 crore.

Revenue from operations (including Utkal) grew by 8 percent year-on-year to Rs 11,938 crore in quarter ended December 2018.

At operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) including Utkal rose 3.5 percent to Rs 1,926 crore in Q3 YoY, but margin contracted to 16.1 percent against 16.9 percent in same period last year.

"This is on the back of supporting macros, improvement in operational efficiencies and better realisations. This was despite increase in input costs, mainly of coal and furnace oil," the aluminium major said.

Interest expenses for the quarter were lower by 12 percent to Rs 477 crore YoY, mainly due to re-pricing of long term project loans and loan re-payments.

The company said under its continuous deleveraging focus, it prepaid another Rs 1,575 crore in October 2018.

Hence, Hindalco standalone plus Utkal Alumina net debt to EBITDA (on TTM Basis) improved to 2.36x as on December 2018 from 2.67x as on March 2018, it added.

Aluminium business (including Utkal) during the quarter grew by 12.6 percent to Rs 6,018 crore with its EBITDA increasing 8 percent to Rs 1,286 crore YoY on supporting macros, partially offset by increase in the input prices.

The company achieved aluminium metal production of 324 Kt in Q3FY19, as its plants continued to operate at peak designed capacities, the company said, adding alumina (including Utkal Alumina) production was higher at 749 Kt versus 734 Kt in the corresponding period last year on account of better operational performance.

Copper business revenue at Rs 5,925 crore increased by 4 percent and its operating income at Rs 431 crore was higher by 2.4 percent for quarter ended December 2018.

At 14:38 hours IST, the stock was quoting at Rs 199.65, up Rs 0.30, or 0.15 percent on the BSE.

Source:https://www.moneycontrol.com/news/business/earnings/hindalco-q3-profit-including-utkal-surges-47-to-rs-713-cr-margin-contracts-3521481.html

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