Hindalco Industries Results Analysis & Implications in near Future

Hindalco Industries Results Analysis

We are analysing the results of Hindalco Industries Ltd. in the wake of Coronavirus pandemic and will see how it has affected the performance of the company.

As per Wikipedia Hindalco Industries Ltd., is an Indian aluminium and copper manufacturing company, is a subsidiary of the Aditya Birla Group. Its headquarters are at Mumbai, Maharashtra, India. It is the Flagship company in the metals business. The company has annual sales of US$ 15 billion and employs around 20,000 people.

CMP Rs. 144 | M Cap Rs. 32257 Cr | 52 W H/L 221/85

Result Ahead of Expectation

Standalone

Revenue from Operations came at Rs. 9992 Cr (-2.3% QoQ, -19.2% YoY) vs expectation of Rs. 9658.9 Cr, QoQ Rs. 10230 Cr, YoY Rs. 12372.7 Cr
EBIDTA came at Rs. 1163 Cr (14.8% QoQ, 28.9% YoY) vs expectation of Rs. 978.8 Cr, QoQ Rs. 1013 Cr, YoY Rs. 902.4 Cr
EBITDA Margin came at 11.6% vs expectation of 10.1%, QoQ 9.9%, YoY 7.3% Adj. PAT came at Rs. 326 Cr vs an expectation of Rs. 216 Cr, QoQ Rs. 204 Cr, YoY Rs. 235.8 Cr

Aluminium:

EBITDA stood at Rs. 1,039 crores in Q4FY20 up 3% YoY. Aluminium metal production of 327 Kt, up 2% YOY. Aluminium Metal sales were at 314 Kt down 3% YoY, due to the lockdown effect.

Aluminium VAP (excluding wire rods) sales volumes stood at 76 Kt vs. 83 Kt in Q4FY19. Utkal Alumina refinery recorded its highest-ever quarterly production of 441 Kt in this quarter

Copper

Copper EBITDA in Q4FY20 was at Rs. 406 crore compared to Rs. 373 crore in Q4FY19, higher by 9% year-on-year. Revenue from the Copper Business was Rs. 4,717 crore lower by 28% YoY due to lower realisations and volumes.m Total copper metal sales were lower by 14%, at 86 Kt in Q4FY20, vs. 100 Kt in the year-ago quarter, impacted by the lockdown effect in March'20. Copper Value Added Product (VAP) production at 71 Kt, is up 15% YoY. Share is trading at 4.8x EV/Consolidated EBITDA

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