02 February 2018
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Highlights Q3 FY18
(Standalone – Unaudited)
Hindalco achieved Revenues of Rs.11,023 crore, higher as compared to Q3FY17, led by macro factors, volumes and by-product realisation. EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) for the quarter was Rs.1,611 crore, up by 15 per cent compared to the previous year, driven by higher volumes in both businesses and supportive macros, partly offset by higher input costs. Depreciation rose by 7 per cent Y-o-Y, on account of progressive capitalisation. Interest expense for the quarter was lower by 18 per cent due to prepayment and re-pricing of long term loans. Net profit for Q3 FY18 was at Rs.376 crore vs. Rs.320 crore in the previous year, after considering a provision of Rs.115 crore, based on a judgement of the Hon’ble Supreme Court on mining regulations.
Revenue from Aluminium segment for Q3FY18 was up Y-o-Y at Rs.5,323 crore, led by higher sales of Aluminium metal and increased realisation. EBITDA for Q3 FY18 grew by 7 per cent Y-o-Y to Rs.940 crore, on the back of higher metal prices and volumes which mitigated the spiralling input costs.
Aluminium metal production was at 323 kilotonne and Alumina (including Utkal Alumina) at 734 kilotonne in Q3 FY18. VAP (including Wire Rod) production was at 123 kilotonne, up by 3 per cent vis-à-vis the previous year. Aditya, Mahan and Utkal plants continued to operate at their rated capacities.
Revenue from Copper segment increased Y-o-Y to Rs.5,701 crore, driven by higher volume and by-product realisation. EBITDA as compared to the previous year soared by 28 per cent to Rs.421 crore, consequent upon higher Copper sales, by-product realisation and supportive macro factors.
For Q3FY18, Copper Cathode production was 101 kilotonne, up by 8 per cent and CC Rod production at 38 kilotonne.
Utkal Alumina International Limited (UAIL):
The EBITDA for Q3FY18 surged by 73 per cent to Rs.247 crore given higher realisation due to higher international alumina prices. Profit After Tax for Q3FY18 was Rs.118 crore vs. loss of Rs.55 crore in Q3FY17.
UAIL continues to be amongst the lowest cost producers globally. During the quarter, UAIL produced 376 kilotonne of alumina.
Net sales increased 33 per cent Y-o-Y to USD3,085 million which was supported by the quarterly shipment of 796 kilotonne. Y-o-Y shipment growth is 6 per cent which includes a 12 per cent increase in shipments of automotive products.
Adjusted EBITDA (excluding metal price lag) was at USD 305 million up by 20 per cent, over the previous year. Profitability was driven by mix shifting towards automotive, increasing volumes, recycled content and operating efficiencies. Consequently, its adjusted EBITDA per ton was the highest ever at USD 383.
Net Income was at USD121 million for Q3FY18, compared to USD63 million in the previous year.
Novelis has recently announced its plans to expand its production footprint in the US with an approximate USD300 million investment in automotive finishing capacity in Kentucky, US. Novelis also has agreed to acquire the operating facilities and manufacturing assets for Euro 200 million at its Sierre, Switzerland, plant that have historically been leased.
Performance across businesses continues to be robust. Stable operations and supportive macros remain the main drivers. Novelis has maintained its market leadership in can, auto segments as well as in recycling operations. Going forward, strong recovery of demand across businesses in India augurs well for Indian operations. In management view, key risks remain in the form of higher input costs and an oversupplied domestic market. Given the integrated nature of its business model, focus on customer centricity and new value added capacity, Hindalco is well placed to cater to the demand recovery. Post de-leveraging, Hindalco is now more focused on capacity expansion at Utkal Alumina, Copper Rod Mill and Novelis Auto.
Statements in this “Press Release” describing the company’s objectives, projections, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the company’s operations include global and Indian demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in the company’s principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the company conducts business and other factors such as litigation and labour negotiations. The company assume no responsibility to publicly amend, modify or revise any forward looking statement, on the basis of any subsequent development, information or events, or otherwise.
Dr. Pragnya RamGroup Executive President, Corporate Communications & CSRAditya Birla Management Corporation Private LimitedAditya Birla Centre, 1st Floor, 'C' WingS.K. Ahire Marg, WorliMumbai 400 030.
91-22-6652 5000 /2499 5000
Fax: 91-22-6652 5741/ 42