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Hindalco FY20 profit falls 31% to Rs 3,767 crore, revenue down 9%

Hindalco's consolidated profit dropped by 43 per cent to Rs 668 crore in Q4 FY20 as compared to Rs 1,178 crore in the same period last year

Chitranjan Kumar | June 12, 2020 | Updated 17:27 IST
Hindalco FY20 profit falls 31% to Rs 3,767 crore, revenue down 9%
Hindalco's board has recommended a dividend of 100 per cent for FY20

Hindalco Industries, a subsidiary of the Aditya Birla Group, closed financial year 2019-20 (FY20) with 31 per cent decline in its consolidated net profit at Rs 3,767 crore as compared to Rs 5,495 crore in the previous fiscal. The consolidated revenue from operation fell by 9 per cent to Rs 1.18 lakh crore versus Rs 1.31 lakh crore in the financial year 2018-19. 

During the January-March quarter (Q4 FY20), the aluminium and copper manufacturing company posted a sharp drop of 43 per cent in its consolidated net profit at Rs 668 crore versus Rs 1,178 crore in the same period last year.

Hindalco's consolidated revenue from operation slipped by 13 per cent to 29,318 crore in Q4 FY20 as against Rs 33,745 crore in Q4 FY19.

The company's EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortisation) rose by 6 per cent to Rs 4,173 crore compared to Rs 3,938 crore in the year-ago period, helped by robust performance by its subsidiary Novelis, lower input costs and stable operations in the Indian businesses.

"Despite rising uncertainty on account of COVID-19, Novelis recorded its best-ever EBITDA, while the Indian aluminium business delivered EBITDA margins for the quarter and full-year, that outperformed the industry," Hindalco said in a filing to the Bombay Stock Exchange.

The financial cost of the Aditya Birla Group company rose by 47 per cent to Rs 1,429 crore versus Rs 975 crore in the corresponding period last year.

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Novelis, a subsidiary of Hindalco Industries, reported a net income (excluding tax-effected special items) of $153 million in Q4 FY20, an increase of 18 per cent over Q4 FY19. Revenue was down 12 per cent YoY at $2.7 billion in Q4 FY20, mainly due to a decline in average base aluminium prices and local market premiums. The company recorded its highest-ever quarterly adjusted EBITDA of $383 million, a growth of 7% over the prior year.

Commenting on the results, Satish Pai, Managing Director, Hindalco Industries said, "We attribute our strong fourth quarter results to our sustained focus on cost control and better efficiencies, as well as, our proactive and precautionary measures during the pandemic. Our EBITDA margins were the best in the industry despite significant market uncertainty. This shows the extent of Hindalco's resilience to perform in all market environments."

Hindalco's board has recommended the dividend of 100 per cent, i.e. Rs 1 per equity share of face value of Rs 1 each for the year ended March 31, 2020, subject to the approval of shareholders at the Annual General Meeting (AGM) of the company.

Meanwhile, shares of Hindalco Industries closed 1.14 per cent higher at Rs 146.10 apiece on the BSE.

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