Hindalco Announces Q1 FY 2014-15 Standalone Results [Unaudited]
Aluminium production at highest ever level on back of ongoing ramp-up at Greenfield facilities
(In Rs. crore) Q1FY15 Q1FY14 Q4FY14
Revenue from Operations 7,996 5,838 8,435
Other Income 216 428 212
Profit Before Interest, Tax and Depreciation (PBITDA) 965 907 1,057
Depreciation 187 183 244
Finance Costs 338 149 215
Profit before Exceptional Items and Tax 440 575 598
Exceptional Items - - 396
Profit before Tax 440 575 202
Tax Expenses 113 101 -46
Net Profit 327 474 248
Basic EPS — Rupees 1.59 2.48 1.20
Hindalco, the Aditya Birla Group flagship Company, today announced its unaudited results for the first quarter ended June 30, 2014.
Revenue from operations for the quarter grew by 37% on the back of higher volume in both the businesses and higher realisation in Aluminium Business vs, Q1FY14. Aluminium volumes were higher driven by the ramping up of production at Mahan Smelter. Copper volume in the corresponding quarter last year was lower due to the shutdown at Dahej Smelter.
During the quarter, PBITDA stood at Rs. 965 crore vs. Rs. 907 crore in Q1FY14. The growth in PBITDA was largely on account of higher volumes and realisation.
Other Income was lower compared to Q1FY14 as previous year income included certain one-timers and dividends from subsidiaries. Finance costs rose due to interest on project loan being charged to revenue, on progressive capitalisation of Greenfield projects.
Depreciation is at Q1FY14 level, despite higher capitalisation, mainly on account of revision of useful life of certain assets in compliance with Schedule II of the Companies Act, 2013. Consequently, depreciation for the quarter is lower by Rs. 145 crore
Sequentially, compared to Q4FY14, Revenue from Operations had been lower by 5% due to marginally lower volume in Aluminium Business. PBITDA has been lower by 9%.
Aluminium LME had been lower by 2% vis-Ã -vis Q1FY14. A weaker Rupee and higher regional premium, cushioned the decline substantially.
Of the total revenue of Rs. 7,996 crore, Aluminium Business contributed Rs. 3,011 crore vs. Rs. 2,211 crore in Q1FY14. The higher Revenue is attributable to 37% higher volume and higher metal premium over LME. The segment results of Aluminium Business rose from Rs. 249 crore in Q1FY14 to Rs. 320 crore in Q1FY15 riding on higher volume, better realisation and lower depreciation.
In the Copper Business, revenue moved up to Rs. 4,990 crore vs. Rs. 3,636 crore in Q1FY14. The performance of the Copper Business reflected enhanced volume post the smelter shutdown in Q1FY14. The segment results soared from Rs. 81 crore in Q1FY14 to Rs. 317 crore in Q1FY15.
Sequentially, compared to Q4FY14, Aluminium segment results had been lower by 8%, while Copper results were maintained at the same level.
Alumina production (excluding Utkal Refinery) was at 290 Kt vs. 348 Kt in Q1FY14 and 318 Kt in Q4FY14. Production was adversely impacted due to constraints posed by bauxite availability.
Metal production extended substantially to 190 Kt vs. 139 Kt in Q1FY14 and 175 Kt in Q4FY14, consequent to the ongoing ramp-up at Mahan Smelter.
Utkal Alumina refinery produced 199 Kt Alumina in Q1FY15. The standalone result do not include performance of Utkal Alumina refinery, as it is a separate subsidiary.
The Smelting operations at Aditya Aluminium, Odisha were affected, following a prolonged power outage in early July due to external grid failure and torrential rain. Similarly in early August due to torrential rain the smelting operation at Hirakud, Odisha were also affected. Efforts are on to restore normalcy at the both the locations.
Cathode production was higher at 96 Kt as against 68 Kt in Q1FY14, on account of the planned shutdown in Q1FY14 and maintained at the same level as in Q4FY14.
In sum, Hindalco’s endeavours to deliver stakeholder value continue relentlessly.
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