Hindalco beats Q2 estimates as strong metal prices offset rising input costs
Mint · Dipali Banka ·
The company reported an almost 59% jump in consolidated net profit to ₹7,532 crore in Q2, but a 39% rise in input costs during the quarter threatens to squeeze near-term margins.
Hindalco Industries Ltd beat analyst estimates in the September quarter on strong metals pricing, even as higher raw material and energy costs ate into the benefit of elevated aluminium prices. The company expects production costs to rise further in the December quarter before easing as coal availability improves.
The Aditya Birla Group's metals flagship reported an almost 59% jump in consolidated net profit attributable to owners to ₹7,532 crore in the quarter from ₹4,741 crore a year earlier, according to its stock exchange filing. The profit figure beat a Bloomberg consensus estimate of ₹6,120.19 crore based on nine analyst estimates.
However, rising input costs, up 39% during the quarter, are emerging as a concern for the aluminium producer. Managing director Satish Pai said the cost of producing a tonne of aluminium rose 5% sequentially in the September quarter, largely because of higher coal and calcined petroleum coke costs.