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12 JUNE 2020 AL CIRCLE

Hindalco FY20 profit slips 31% to INR 3,767 crore, revenue sinks 9%

EDITED BY : RUPANKAR MAJUMDER 2MINS READ

Hindalco Industries, a subsidiary of the Aditya Birla Group, closed the financial year 2019-20 (FY20) with 31% downturn in its consolidated net profit at INR 3,767 crore as compared to INR 5,495 crore in the preceding fiscal. The consolidated revenue from operation drops by 9% to INR 1.18 lakh crore against INR 1.31 lakh crore in the financial year 2018-19.

During the January-March quarter (Q4 FY20), Hindalco posted a steep decline of 43% in its consolidated net profit at INR 668 crore versus INR 1,178 crore in the same phase last year.

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Hindalco posted its annual results

Hindalco's consolidated revenue from operation reflected fall by 13% to INR 29,318 crore in Q4 FY20 as against INR 33,745 crore in Q4 FY19.

The company's EBITDA inclined by 6% to INR 4,173 crore compared to INR 3,938 crore in the year-ago period, helped by robust performance by its subsidiary Novelis, lower input costs and stable operations in the Indian businesses.

Hindalco said in a filing to the Bombay Stock Exchange: "Despite rising uncertainty on account of COVID-19, Novelis recorded its best-ever EBITDA, while the Indian aluminium business delivered EBITDA margins for the quarter and full-year that outperformed the industry.”

The financial cost of the Aditya Birla Group Company grew by 47% to INR 1,429 crore against INR 975 crore in the corresponding period last year.

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Novelis, a subsidiary of Hindalco Industries, reported a net income (excluding tax-effected special items) of $153 million in Q4 FY20, an increase of 18% over Q4 FY19. Revenue was down 12% Y-o-Y at $2.7 billion in Q4 FY20, mainly due to a decline in average base aluminium prices and local market premiums. The company recorded its highest-ever quarterly adjusted EBITDA of $383 million, a growth of 7% over the prior year.

Satish Pai, Managing Director, Hindalco Industries commenting on the results said: "We attribute our strong fourth-quarter results to our sustained focus on cost control and better efficiencies, as well as, our proactive and precautionary measures during the pandemic. Our EBITDA margins were the best in the industry despite significant market uncertainty. This shows the extent of Hindalco's resilience to perform in all market environments."

Hindalco's board has recommended the dividend of 100%, i.e. INR 1 per equity share of the face value of INR 1 each for the year ended 31st March’20, subject to the approval of shareholders at the AGM of the company.


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EDITED BY : RUPANKAR MAJUMDER 2MINS READ

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