Hindalco Q1 results: Firm reports net loss of Rs 40 crore; revenue dips 26% YoY

Hindalco on Friday posted a standalone loss of Rs 40 crore for the quarter ended June 30. It had reported a profit of Rs 23 crore in the corresponding quarter last year.

Standalone revenue from operations declined 26.20 per cent YoY to Rs 7,420 crore.

In a regulatory filing, Hindalco said, “The company’s operations, revenues and profitability during the quarter ended June 30 were impacted due to Covid-19.”

On a consolidated basis, the company posted a loss of Rs 709 crore against a profit of 1,063 crore a year ago. Revenue from operations declined 15.64 per cent YoY to Rs 25,283 crore.

Commenting on the results, Satish Pai, Managing Director, Hindalco Industries, said, “All our Aluminium India smelters operated at more than 90 per cent capacity during the lockdown. We maintained our sales volumes, with exports accounting for nearly 80 per cent of sales. This performance led to our Indian aluminium business recording an industry-high EBITDA margin.”

Segment-wise, revenue from copper business declined 34% YoY due to lower volumes and realisation, both of copper and by-products. EBITDA slipped 88 per cent YoY.

Revenue from aluminium business declined 19 per cent YoY, due to lower aluminium prices. “Despite an unprecedented macro environment due to Covid, EBITDA maintained at Rs 856 crore. EBITDA margins at 19.3 per cent against 15.5 per cent in Q1 FY20,” Hindalco said.

Novelis net sales in Q1FY21 stood at $2.4 billion impacted by sharp fall in average LME aluminum prices and local market premiums as well as decline in total flat rolled product shipments.