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Hindalco Industries: Cost Efficiency Boosts Profitability - Views on News from Equitymaster
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  • Aug 18, 2016 - Hindalco Industries: Cost Efficiency Boosts Profitability

Hindalco Industries: Cost Efficiency Boosts Profitability
Aug 18, 2016

Hindalco Industries has announced the first quarter results of financial year 2016-2017 (1QFY17). While the topline declined by 11.4% YoY, the bottomline increased by 379% YoY during the quarter.

Performance summary:
  • Income from operations declined by 11.4% YoY during 1QFY16.
  • Operating profit increased by 30.4% YoY and operating margin has increased by 4.8% and stood at 14.9%.
  • Other income increased by 60.3% YoY during the quarter.
  • Net profit accelerated by 379.3% YoY on the back of strong operating performance and growth in other income despite an increase in tax outgo. Depreciation saw a moderate increase of 2.3% YoY.

    Financial Snapshot (Standalone)
    (Rs m) 1QFY16 1QFY17 Change
    Total Income 85,753 75,973 -11.4%
    Total Expenses 77,068 64,648 -16.1%
    Operating profit (EBITDA) 8,685 11,325 30.4%
    Operating profit margin (%) 10.1% 14.9%
    Other income 1,362 2,184 60.3%
    Interest 6,040 5,996 -0.7%
    Depreciation 3,307 3,382 2.3%
    Profit before tax & exceptional items 700 4,131 490.1%
    Tax 86 1189 1279.0%
    Net Profit 614 2,943 379.3%
    Net profit margin (%) 0.7% 3.9%
    No. of shares (m) 2,065
    Basic diluted earnings per share (Rs) ^ 3.8
    P/E ratio (x) * 40.5

    * On trailing 12 month basis

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