Hindalco’s consolidated EBITDA down 13% in Q1 FY20; Aluminium VAPs output marginally up

Hindalco Industries Ltd., a global leader in aluminium and copper, announced consolidated results for the first quarter ended 30 June 2019. Hindalco’s consolidated revenue dropped from INR 31,078 crore in Q1 FY19 to INR 29,972 crore in Q1 FY20.

EBITDA stood at INR 3,769 crore in Q1 FY20 compared to INR 4,334 crore a year ago. Profit before Tax (and Before Exceptional Items) was at INR 1,578 crore in Q1 FY20 compared to INR 2,275 crore in the prior year. Profit After Tax came in at INR 1,063 crore in Q1 FY20. “While profits were impacted by the global downturn and lower commodity prices, Hindalco held its ground and delivered a steady performance,” Hindalco said through its press release.

Satish Pai, Managing Director, Hindalco Industries, said, “We continued to maintain our strong position in aluminium and copper in Q1 FY20 despite headwinds. The resilient performance owes as much to our backward integration, resource security, strong balance sheet, operational capabilities and rich product portfolio. Today, 79 per cent of Hindalco’s consolidated EBITDA is non-LME linked, reflecting a balanced and sustainable business model, which will serve us well in all market conditions.”

Revenue from Indian Aluminium Business stood at INR 5,472 crore in Q1 FY20, down 3 per cent year-on-year due to lower realisations. EBITDA decreased to INR 889 crore in Q1 FY20. EBITDA margins were at 16 per cent in Q1 FY20.

Hindalco achieved aluminium production of 326 thousand tonnes. Alumina production (including Utkal) stood at 686 thousand tonnes in Q1 FY20. Production of Aluminium Value Added Products (VAPs), excluding wire rods, was at 79 thousand tonnes in Q1 FY20, from 78 thousand tonnes in Q1 FY19. The impact of the Muri Alumina refinery closure was partially offset by higher volumes at Utkal Alumina.