Street celebrates Hindalco results

Aditya Birla group promoted aluminum maker Hindalco has posted more than double net profits this quarter as compared to previous quarter of the previous fiscal. The company on May 28 has declared its Q4FY16 results, wherein for the March quarter the company has reported a net profit of Rs 356.33 crores. Net profits have increased by 123 per cent as compared to Q4FY15. EBITDA for the period stands at Rs 1166.43 crores. Total income from operations stands at Rs 8668 crores for the quarter as against Rs 8150.27 crore for the corresponding period of the previous fiscal.

On a YoY basis, net profits after minority interest stand at Rs 263.32 crores, whereas for the previous fiscal it stood at Rs 854.21 crores. Net profit has decreased by 65 per cent. EBITDA stands at Rs 8724.01 crores and has increased by 3 per cent from the previous year. Consolidated total income for the period stands at Rs 1000.54 crores.On a CAGR basis, income and EBITDA for the period of 3 years have grown by 7 and 3 per cent respectively.

Revenues for the quarter were lower by 8 per cent due to a sharp decline in aluminum and copper realisations. The lower cost of raw materials, especially energy inputs was the major reason for strong earnings this quarter.

Hindalco Industries Limited deals in aluminum and copper. Hindalco's major products include standard and specialty grade aluminas and hydrates, aluminum ingots, billets, wire rods, flat rolled products, extrusions and foil. It has a factory located in Renukoot, Uttar Pradesh. 

The shares on Monday have opened positive, and are up by 9 per cent on an intra – day basis and are trading at Rs 100.10. Shares in the last 3 months have surged by about 64 per cent.