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Hindalco Q2 sales seen up 4.3%
Edited by : AL CIRCLE
3 min read
Aluminium major Hindalco Industries ' profit after tax is expected to go down by 24 percent year-on-year and 10 percent quarter-on-quarter to Rs 382 crore in the July-September quarter of current financial year.
Sales are seen going up by 4.3 percent YoY and 8.8 percent QoQ to Rs 6,490 crore during the same quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 14.1 percent YoY to Rs 531 crore in the second quarter of FY13, but that is seen rising 33 percent on QoQ basis.
EBITDA margin is expected to be at 8.18 percent in the three months period ended September 2012 as against 9.93 percent in a year ago period and 6.7 percent in the previous quarter.
In the April-June quarter of current financial year, dividend income from subsidiaries to the tune of Rs 1.3 billion was included in other income. If we remove this income, then the PAT would be much lower.
Analysts on an average feel the operationally numbers will be subdued on year-on-year basis though sequentially there will be a improvement. The profit in June quarter was hit by disruptions at Al units and outage at Cu smelting unit.
Topline will be pegged back by lower metal prices but will be mostly offset by a weakening currency. Weak Indian rupee against USD on QoQ basis is, however, likely to keep the topline flat.
LME base metal prices in dollar terms: Copper fell 14 percent YoY and 2 percent QoQ while aluminum declined 20 percent YoY and 3 percent QoQ.
Aluminum operations: Disruptions during Q2 at Hirakud smelter will remain a drag on Aluminum profits
Analysts expect primary aluminum volumes to be muted as compared to Q1FY13 at 1,30,000 tonne, down 9 percent YoY.
Analysts do not expect sequential growth in the aluminum volumes as Hirakud smelter's captive power plant operations were partially shut due to breach of ash pond.
Street will also watch out for benefits of the partial resolution of the operational issues (Grid related issues, Muri alumina unit disruption).
Lower realizations and operational hazards will dent their margins by 150 basis points on a YoY basis:
Margins are expected to improve during the quarter due to improved utilizations in copper business; copper delivered a EBIT margin of sub 2 percent in Q1FY13.
Lower LME prices and higher repairs cost may continue to impact its operating performance.
Operations are likely to remain subdued, as Hindalco continues to reel under cost pressures.
Sales are seen going up by 4.3 percent YoY and 8.8 percent QoQ to Rs 6,490 crore during the same quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 14.1 percent YoY to Rs 531 crore in the second quarter of FY13, but that is seen rising 33 percent on QoQ basis.
EBITDA margin is expected to be at 8.18 percent in the three months period ended September 2012 as against 9.93 percent in a year ago period and 6.7 percent in the previous quarter.
In the April-June quarter of current financial year, dividend income from subsidiaries to the tune of Rs 1.3 billion was included in other income. If we remove this income, then the PAT would be much lower.
Analysts on an average feel the operationally numbers will be subdued on year-on-year basis though sequentially there will be a improvement. The profit in June quarter was hit by disruptions at Al units and outage at Cu smelting unit.
Topline will be pegged back by lower metal prices but will be mostly offset by a weakening currency. Weak Indian rupee against USD on QoQ basis is, however, likely to keep the topline flat.
LME base metal prices in dollar terms: Copper fell 14 percent YoY and 2 percent QoQ while aluminum declined 20 percent YoY and 3 percent QoQ.
Aluminum operations: Disruptions during Q2 at Hirakud smelter will remain a drag on Aluminum profits
Analysts expect primary aluminum volumes to be muted as compared to Q1FY13 at 1,30,000 tonne, down 9 percent YoY.
Analysts do not expect sequential growth in the aluminum volumes as Hirakud smelter's captive power plant operations were partially shut due to breach of ash pond.
Street will also watch out for benefits of the partial resolution of the operational issues (Grid related issues, Muri alumina unit disruption).
Lower realizations and operational hazards will dent their margins by 150 basis points on a YoY basis:
Margins are expected to improve during the quarter due to improved utilizations in copper business; copper delivered a EBIT margin of sub 2 percent in Q1FY13.
Lower LME prices and higher repairs cost may continue to impact its operating performance.
Operations are likely to remain subdued, as Hindalco continues to reel under cost pressures.
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