Hindalco, the Aditya Birla Group flagship Company, today announced its unaudited results for the quarter ended December 31, 2015.
Revenues for the quarter were lower by 5% as compared with the corresponding quarter of the previous financial year due to a sharp decline in aluminium and copper realisations. However, a strong increase in aluminium volumes and our thrust on value addition partially offset the impact of severe fall in realisations.
Operating results for the quarter were severely impacted by the sharp drop in London Metal Exchange prices and regional aluminium premium, the macro economic factors beyond the company’s control. As a result combined decline in realisations, on YoY basis was over USD 700 per tonne of Aluminium.
However, strong operating performance on the back of ramp up of new age smelters ;partly aided by softer input prices helped us in partially mitigating the realisation pressure. The Mahan smelter is now operating at full capacity and the Aditya smelter is well on course for full ramp up.
In line with the company’s long term strategy with regard to its coal mix, the first of the four coal blocks, won in the auction, Gare Palma IV/4 has started producing coal towards the end of the quarter.
Profit before Interest, Tax and Depreciation (PBITDA) at Rs 922 Crore reflects a robust operational performance in the face of these severe macro- economic headwinds.
Depreciation and finance cost were higher given the progressive capitalisation of Greenfield projects. These charges were higher by Rs 227 Crore as compared with Rs 663 Crore in Q3 FY15.
As a result PBT for the quarter stood at Rs 31 Crore, while Net profit for the quarter ending Q3 FY16 was Rs 40 Crore.
Compared to Q2FY16, Revenues from Operations were lower by 9%, primarily a fall out of lower copper LME, even as Aluminium revenues were higher on account of higher volumes.
The reported PBITDA was lower by Rs 98 Crore, while net profit was lower by Rs 63 Crore. The interest costs declined marginally following the softening of interest rates.
During the quarter Alumina production (including Utkal refinery) at 705 KT (kilo tonnes) was 19% higher as compared with Q3 FY 15. The long distance conveyor at Utkal is operational. The published financials do not include Utkal performance.
Aluminium metal production stood at 296 KT and was up 35% on YoY basis. Despite higher volumes, the EBIT of Aluminium segment declined because of lower realisations and higher depreciation.
The Copper segment continued to deliver a solid performance with supportive TcRc. YoY Cathode production was steady at 94 KT, while fertilizer (DAP) production jumped 9% to 89 KT.
On YoY basis, the EBIT of the copper segment was lower due to significantly lower Copper LME prices.
With macro- economic headwinds continuing, even as the Company faces challenging times it continues with its un-relented focus on operational excellence, enhanced value addition and cash conservation.
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