Hindalco Industries Ltd shares dropped over 4% in intraday trade on Friday after the company’s net profit dropped by a sharp 28% year-on-year to Rs 1,063 crore in the first quarter ended June (Q1) amid global slowdown and falling commodity prices.
At 2:32 pm, shares of Hindalco Industries were trading at Rs 175.15, down 3.3%, on BSE after hitting an intra-day low of Rs 173.30. The stock has corrected nearly 20% in the last one year.
Hindalco, the flagship metal manufacturing firm of the Aditya Birla Group, said its consolidated revenue from operations fell 3.6% to Rs 29,972 crore during the June quarter, mainly due to weak copper and aluminium businesses.
Hindalco’s copper business revenue fell 8.4% to Rs 4,593 crore during the June quarter. Its earnings before interest, tax, depreciation and amortization (Ebitda) dropped 23% year-on-year to Rs 267 crore due to lower by-product volumes and realisations.
Revenue from aluminium business, including that from Utkal Alumina, was down 3% to Rs 5,472 crore during the June quarter, while its Ebitda fell by a whopping 42% to Rs 889 crore due to lower realisations.
In its BSE filing, Hindalco said: “While profits were impacted by the global downturn and lower commodity prices, Hindalco held its ground and delivered a steady performance. Novelis led from the front to achieve record quarterly results, and the Indian businesses put up a resilient show amid subdued economic conditions.”
Novelis’ adjusted Ebitda (as per US GAAP) rose 11% year-on-year to $372 million in the June quarter, while net income (excluding special items) jumped 26% to $145 million. Revenue was, however, down 6% to $2.9 billion mainly due to a fall in average base aluminium price.
“This (Novelis) performance was driven by higher shipments coupled with favourable price and product mix, partially offset by less favourable recycling benefits due to lower aluminium prices,” Hindalco said.
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