HINDALCO Announces Quarterly Results (3QFY19); Net Profit Down 34.1%
Mon, 18 Feb

HINDALCO has announced its results for the quarter ended December 2018. Here is a detailed performance review of the same:

HINDALCO Quarterly Financials

No. of Mths
Qtr. Ending
3
Dec-17*
3
Sep-18*
3
Dec-18*
QoQ ChangeYoY Change
Net SalesRs m110,228108,330119,37710.2%8.3%
Other incomeRs m2,9942,0132,72735.4%-8.9%
TurnoverRs m113,222110,344122,10410.7%7.8%
ExpensesRs m101,93997,423110,09613.0%8.0%
Gross profitRs m7,13610,9079,282-14.9%30.1%
DepreciationRs m3,8224,0014,2917.2%12.2%
InterestRs m04,2424,3372.2%0.0%
Profit before taxRs m6,3084,6773,381-27.7%-46.4%
TaxRs m2,5521,591906-43.1%-64.5%
Profit after taxRs m3,7553,0862,475-19.8%-34.1%
Gross profit margin%6.510.17.8
Effective tax rate%40.534.026.8
Net profit margin%3.32.82.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter grew 8.3% on a year-on-year (YoY) basis. The expenses were up by 8.0% YoY during the same period.
  • The company's operating profit increased by 30.1% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 7.8% in 3QFY19 as against 6.5% in 3QFY18.
  • Depreciation charges increased by 12.2% and finance costs increased by 0.0% YoY, respectively.
  • Other income declined by 8.9% YoY during the quarter.
  • Net profit for the quarter declined by 34.1% YoY. Net profit margins during the quarter declined from 3.3% in 3QFY18 to 2.0% in 3QFY19.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter grew 10.2% on a quarter-on-quarter (QoQ) basis. The expenses were up by 13.0% QoQ during the same period.
  • The company's operating profit declined by 14.9% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 7.8% in 3QFY19 as against 10.1% in 2QFY18.
  • Net profit for the quarter declined by 19.8% QoQ, while net profit margins declined from 2.8% in 2QFY18 to 2.0% in 3QFY19.

To see how HINDALCO has performed over the last eight quarters, please visit here.

HINDALCO Share Price Performance

Over the last one year, HINDALCO share price has moved up from Rs 247.4 to Rs 185.0, registering a Loss of Rs 62.4 or around 25.2%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 10,043.2 (up 0.3%). Over the last one year it has moved down from 15,124.2 to 10,043.2, a gain of 5,081 points (down 33.6%).

Overall, the S&P BSE SENSEX is up 3.9% over the year.

Current Valuations

At the current price of Rs 185.0, the price to earnings (P/E) ratio of HINDALCO stands at 28.4 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.7 times.