Hindalco Reports Third Quarter 2017 Results (Unaudited, Standalone)

13 February 2017

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PBDT rose 3x to Rs. 817 crore from Rs. 274 crore in Q3 FY16


  • Record EBITDA in Q3 FY17 on the back of higher realization and steady operational performance
  • In addition to Gare Palma IV/4 and Gare Palma IV/5 coal mines, Kathautia mines commenced operations in February 2017 thus further improving coal security
  • Prepaid Rs. 342 crore loan in January 2017, year-to-date Rs. 1,031 crore
  • Performance impacted due to lower demand in domestic market and lower by-products realization (Sulphuric Acid and Diammonium Phosphate)

Financial Highlights:

(In Rs.crore)
Particulars Q3 Q2 9 Months
FY17 FY16 FY17 FY17 FY16
Revenue from Operations 9,915 8,716 9,562 27,636 27,450
Earnings Before Interest, Tax and Depreciation (EBITDA)          
Aluminium          876 354 808 2,555 1,172
Copper 330 352 366 960 1,083
Others 200 153 319 735 683
Total EBITDA 1,405 859 1,493 4,249 2,938
PBDT 817 274 898 2,467 1,121
Earning before Exceptional Items and Tax 459 (38) 547 1,419 180
Profit/ (Loss) Before Tax 459 (38) 632 1,504 180
Profit/ (Loss) After Tax 321 #(33) 440 1,054 152
Earnings per Share (EPS) - Basic (In Rupees) 1.56 (0.16) 2.14 5.14 0.74

# Reported profit after tax in Q3 FY16 was Rs. 40 crore as per Indian GAAP

Note: The Company has adopted Indian Accounting Standards (Ind-AS) w.e.f April 1, 2016 as mandated by the Ministry of Corporate Affairs. Figures for comparable periods have been revised to comply with Ind-AS.1,
The standalone financials do not include financial performance of Utkal Alumina International Limited

Third Quarter Highlights:

Hindalco Industries Limited, the flagship company of the Aditya Birla Group, today announced its unaudited standalone results for the quarter ended December 31, 2016. The company registered Revenue of Rs. 9,915 crore. EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) at Rs. 1,405 crore was up 64 per cent vis-à-vis Q3 FY16 and Net Profit stood at Rs. 321 crore.

Revenues for the quarter were higher by 14 per cent over the previous year, driven by increase in average realization for both Aluminium and Copper, along with weaker rupee and higher aluminium volumes. Aluminium revenue grew by 9 per cent  on the back of strong volume growth and realization. Copper revenue increased by 19 per cent  on account of higher copper realization, partly negated by lower by-product prices (Sulphuric Acid and Diammonium Phosphate).

The cost of most inputs continued to remain benign, though prices of crude derivatives increased marginally with a rise in crude prices. Alumina costs were lower as compared to last year.

Y-O-Y, quarterly EBITDA at Rs. 1,405 crore was higher by 64 per cent . This reflects a robust performance with stable operations. Depreciation at Rs. 358 crore against Rs. 312 crore in Q3FY16 was up due to progressive capitalisation of new projects. Finance charges were Rs. 588 crore against Rs. 585 crore in Q3FY16. Profit before tax for the quarter was Rs. 459 crore and net profit was Rs. 321 crore.

Compared to Q2FY17, Revenues from operations were up by 4 per cent mainly on account of higher realization. EBITDA declined by 6 per cent , a fall out of lower volumes and lower by-product realization in the Copper segment coupled with lower treasury income partly offset by strong overall performance in the Aluminium segment. Sequentially, net profit was lower by 27 per cent because the previous quarter profit included a net exceptional gain of Rs. 85 crore.

Aluminium Business:

During the quarter, Alumina production (including Utkal Alumina) at 744 KT was 5 per cent higher vis- a-vis that in Q3FY16. Aluminium metal production stood at 320 KT and was up 9 per cent. Higher production with stable operations, supportive realization and lower input cost resulted in a record EBITDA of Rs. 876 crore, an increase of 147 per centover the corresponding quarter of the previous year.

Sequentially EBITDA was up by 8 per cent mainly driven by higher realization.

Copper Business:
Y-o-Y quarterly EBITDA declined 6 per cent, impacted by lower by-products realization and lower TcRc (treatment charges and refining charges). Cathode production volumes were flat at 94 KT, CC rod production lower by 8 KT impacted by lower demand.

Sequentially EBITDA fell by 10 per cent due to lower demand in the domestic market and lower by-products realization.

Utkal Alumina International Ltd [UAIL]:
The alumina refinery at UAIL produced 393 KT of alumina in Q3 FY17 compared to 364 KT in Q3 FY16. UAIL EBITDA during the current quarter was Rs. 140 crore.

(The numbers are not added for ascertaining financial performance on a combined basis)

The Company delivered robust operational performance in a challenging demand scenario and economic environment. Its strong performance was on the back of stable operations and recovery in aluminium prices. High level of imports continue to impact domestic sales volumes. Hindalco remains focussed on operational excellence, higher value addition, customer centricity and cash conservation to deliver shareholder value.

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.