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Hindalco announced Q4 and FY19 results

Metal News - Published on Tue, 21 May 2019

Hindalco Industries Ltd a global leader in aluminium and copper announced results for the fourth quarter and year ended 31 March 2019. The company recorded its strongest full-year performance with consolidated PAT, PBT and EBITDA at an all-time high. The robust performance amid a challenging business environment was driven by record results by Novelis and the Indian Aluminium Business, and a sustained performance by the Copper Business.

Financial Summary – Q4 & FY19
India businesses (Hindalco Standalone Plus Utkal Alumina)
Revenue from operations touched INR 45,908 crore for FY19. EBITDA was at a record high of INR 7,532 crore, a 5% increase over the previous year. This spirited performance, despite a sharp rise in input costs, was on the back of stable operations, supporting macros and improved operational efficiencies. Depreciation was higher by 4% due to progressive capitalisation of assets. Interest expense declined 15% YoY primarily due to prepayment of a term loan of INR 1,575 crore and the re pricing of long-term project loans. Profit after Tax (PAT) for FY19 leaped to INR 2,678 crore vs. INR 2,197* crore in FY18, registering a 22% YoY growth.

In Q4 FY19, revenue from operations stood at INR 12,455 crore (INR 11,687 crore in Q4 FY18), up 7%. EBITDA for the quarter was at INR 1,733 crore (INR 1,807 crore in Q4 FY18). PAT for Q4 FY19 stood at INR 506 crore (INR 616 crore in Q4 FY18), primarily due to weaker macros and higher input costs in the last quarter.

Business highlights – FY19

Novelis Inc
Novelis delivered its best ever performance in FY19 with a significant year over year increase in net sales and adjusted EBITDA. Revenue grew 8% to USD 12.3 billion, driven by higher average aluminium prices, record shipments and an enriched product mix. Total shipments of flat rolled products grew 3% to 3,274 Kt in FY19, with a 7% growth in beverage can shipments and a 2% growth in automotive body sheet shipments YoY. Adjusted EBITDA grew 13% to USD 1.368 billion, compared to USD 1.215 billion in FY18, driven by higher shipments, operational efficiencies and a favourable product mix. Adjusted EBITDA per tonne was higher by 10% at USD 418 in FY19 vs. USD 381 for the prior year. Novelis leveraged its extensive recycling footprint and increased its recycled contents from 57% to 61% in FY19.

In Q4 FY19, adjusted EBITDA per tonne stood at USD 411 (Vs D 397 in Q4 FY18), up 3% YoY. For the quarter, Profit after Tax (excluding special items1) was at USD 468 million, up 11% compared to USD 420 million in the prior year.

Aluminium (Hindalco Plus Utkal Alumina)
The Indian Aluminium business delivered a strong revenue growth at INR 23,775 crore for FY19 compared to INR 21,090 crore a year ago, on the back of stronger realisations and supportive macros. EBITDA at INR 5,202 crore in FY19 grew 9% compared to INR 4,790 crore in FY18. This growth was driven by supporting macros, stable plant operations and improved efficiencies, offset by higher input costs in FY19. The company achieved record production of aluminium at 1,295 Kt, with alumina (including Utkal) at 2,893 Kt in FY19. Production of aluminium value added products (VAPs), excluding wire rods, grew 5% to reach an all-time high of 321 Kt.

In Q4 FY19, the Indian aluminium business recorded an 8% YoY growth in revenue at INR 5,953 crore (INR 5,513 crore in Q4 FY18). EBITDA for Q4 was at INR 1,043 crore (INR 1,265 crore in Q4 FY18), down 18% due to lower LME and currency impact.

VAP (copper rod) production increased by 47% to 245 Kt vs. 166 Kt in FY18, due to ramp up of the new Continuous Cast Rod-3 (CCR-3) facility. The CCR-3 plant achieved a production level of 117 Kt in FY19. DAP production jumped 48% to 303 Kt in FY19 vs. 205 Kt last year. The overall production volumes (Copper Cathode) at 347 Kt in FY19 were lower by 15%, due to reduced volumes on account of planned maintenance. Revenue from the Copper business stood at a steady INR 22,155 crore in FY19 vs. INR 22,382 crore in FY18. EBITDA was at INR 1,469 crore vs. INR 1,539 crore in FY18. Better by-product realisation for the year was offset by lower volumes due to planned maintenance and marginally lower Tc/Rc.

Revenue in Q4 FY19 was at INR 6,503 crore (INR 6,176 crore in Q4 FY18), up 5%, aided by higher copper prices. EBITDA for the quarter was at INR 315 crore (INR 329 crore in Q4 FY18), lower by 4% on account of lower Tc/Rc and volumes.

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Posted By : Rabi Wangkhem on Tue, 21 May 2019
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