Hindalco Industries on Friday reported a standalone net loss of Rs 40 crore in the first quarter of fiscal 2021 as against a net profit of Rs 23 crore in the same period last year. The company’s loss was more than CNBC-TV18 analysts poll estimates of Rs 19 crore. and included a one-time loss of Rs 35 crore.
The company’s standalone revenue from operations during the quarter fell 26.2 percent to Rs 7,420 crore from Rs 10,055 crore, YoY. Revenue missed CNBC-TV18 analysts poll estimates of Rs 10,055 crore.
EBITDA in Q1FY21 declined 20.2 percent to Rs 573 crore from Rs 718 crore while EBITDA margin expanded by 60 bps to 7.7 percent from 7.1 percent, YoY.
“All our Aluminium India smelters operated at more than 90% capacity during the lockdown. We maintained our sales volumes, with exports accounting for nearly 80% of sales. This performance led to our Indian Aluminium Business recording an industry-high EBITDA margin.
Novelis also delivered an industry-high EBITDA per ton, amidst a challenging business environment, partly due to strong contribution by Aleris. Novelis’ automotive customers across regions are trending upwards, towards reaching pre-pandemic production levels, with record automotive shipments in China. We are seeing green shoots both in domestic and international markets and we are ready to handle the rise in demand,” said Satish Pai, Managing Director, Hindalco Industries Ltd.
Novelis recorded a quarterly adjusted EBITDA of $253 million in Q1FY21 versus $372 million, and an adjusted EBITDA per ton of $327 versus $448/ton in the year-ago quarter.
“This was impacted by lower shipments and unfavourable product mix, but partially offset by good cost control and EBITDA contribution from the acquired Aleris business, the company said.
Novelis reported a Net Income (excluding tax-effected special items) of $22 million in Q1FY21 versus $145 million. Revenue was at $2.4 billion in Q1FY21 versus $2.9 billion. Total shipments of flat-rolled products (FRPs), at 774 Kt in Q1FY21 (vs 830Kt), were impacted by subdued market conditions on account of COVID, the company said.
Aluminium segment revenue fell 19 percent to Rs 4,436 crore from Rs 5,490 crore, YoY, due to lower aluminium prices.
With smelter utilisation at 90 percent in Q1FY21, Indian Aluminium Business achieved aluminium metal production of 291 Kt versus 326 Kt. Aluminium metal sales were at 303 Kt in Q1FY21, down 5 percent year-on-year, due to the impact of the subdued domestic market, which was offset by higher exports.
EBITDA stood at Rs 856 crore in Q1FY21, compared with Rs 853 crore for the same quarter last year while EBITDA margin was at 19.3 percent.
Revenue from the Copper Business stood at Rs 3,031 crore in the first quarter compared to Rs 4,593 crore in the same quarter last year, lower by 34 percent, due to lower volumes and realisation, both of copper and by-products.
Segment EBITDA in Q1FY21 was Rs 37 crore compared to Rs 307 crore in the corresponding quarter last year.
Copper cathode production in Q1FY21 was impacted by disruptions in operations due to COVID-19, leading to lower production at 41 Kt, down 46 percent. Total copper metal sales were lower by 29 percent, at 58 Kt, and Copper Value Added Product (CC Rods) sales were down 51 percent at 31Kt, impacted by lower domestic demand, the company said.
However, cathode exports in Q1FY21 were higher at 25Kt. DAP (fertiliser) sales volume was up 230 percent driven by robust demand in Q1FY21.
At 2:25 pm, the shares of Hindalco Industries were trading 0.16 percent lower at Rs 183.20 on the BSE.
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