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Hindalco Industries: Strong Operational Performance Boosts Profitability - Views on News from Equitymaster
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  • Nov 30, 2016 - Hindalco Industries: Strong Operational Performance Boosts Profitability

Hindalco Industries: Strong Operational Performance Boosts Profitability
Nov 30, 2016

Hindalco Industries has announced the second quarter results of financial year 2016-2017 (2QFY17). While the topline increased by 1.1% YoY, the bottomline increased by 255.4% YoY during the quarter.

Performance summary:
  • Income from operations increased marginally by 1.1% YoY during 2QFY17. This is on the back of a marginal increase of 0.9% YoY in net sales and an increase in other operating income of 24.6% YoY.
  • Operating profit increased by 88.2% YoY and operating margin has increased by 5.9% and stood at 12.8%.
  • Other income declined by 26.8% YoY during the quarter.
  • Net profit accelerated by 255.4% YoY on the back of strong operating performance and decline in finance cost despite an increase depreciation and in tax outgo.

    Financial Snapshot (Standalone)
    (Rs m) 2QFY16 2QFY17 Change 1HFY16 1HFY17 Change
    Total Income 89,149 90,123 1.1% 174,811 165,970 -5.1%
    Total Expenses 83,003 78,559 -5.4% 159,881 143,159 -10.5%
    Operating profit (EBITDA) 6,146 11,564 88.2% 14,930 22,811 52.8%
    Operating profit margin (%) 6.9% 12.8% 8.5% 13.7%
    Other income 4,597 3,364 -26.8% 5,860 5,626 -4.0%
    Interest 6,275 5,943 -5.3% 12,314 11,938 -3.1%
    Depreciation 2,988 3,516 17.7% 6,295 6,898 9.6%
    Profit before tax & exceptional items 1,480 5,469 269.6% 2,180 9,600 340.4%
    exceptional items 849 849
    Tax 243 1,928.50 694.6% 329 3117 847.8%
    Net Profit before extraordinary Item 1,237 4,389 254.8% 1,851 7,332 296.1%
    Extraordinary Items 8 6
    Net Profit 1,237 4,397 255.4% 1,851 7,338 296.4%
    Net profit margin (%) 1.4% 4.9% 1.1% 4.4%
    No. of shares (m) 2,065
    Basic diluted earnings per share (Rs) ^ 5.5
    P/E ratio (x) * 32.0

    * On trailing 12 month basis

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