After the net profit of Hindalco Industries surged 256.18% to Rs 439.74 crore on 1.28% rise in total income to Rs 9,494.40 crore in Q2 September 2016 over Q2 September 2015, Hindalco share pricegained 4.84% to Rs 180.65 on the NSE. The stock traded at its new 52 weeks high at Rs. 180.65. On NSE, so far approximately two crores shares were traded in the counter.
The result was announced on Saturday, 12 November 2016. The stock markets were closed on Monday, 14 November 2016, for a public holiday.
Hindalco Industries said that in aluminum division, the company delivered robust operational performance in Q2FY17 in a challenging macroeconomic environment because of efficiency gains and lower input costs. Enhanced visibility over coal sourcing and cost and major portion of requirement secured through linkages, Hindalco Industries said. In copper section, copper performance rebounded strongly in Q2 September 2016 after the successful completion of planned maintenance shutdown.
Aluminum production went up by 19% to 321 KT (Kilo Tonne) in Q2FY17 over Q2FY16, significant cost efficiencies achieved across the plants. Inputs costs were largely helpful though crude derivative prices hardened sequentially.
Aluminum Value Added Products (FRP and Extrusions) increased 8%, Wire Rod Production rose 36% reflecting the company’s focus on power and other growth sectors. The company dispensed highest ever quarterly copper production at 106 KT, after victorious planned annual maintenance shutdown. Improved efficiencies aided offset sharp decline in sulphuric acid prices.
Meanwhile, at 1:02 PM, Hindalco share price was trading at Rs. 168, down by 2.50% despite strong Q2 results. Over two crores shares were traded over the NSE counter so far.
Revenues for Q2 September 2016 were broadly stable, as the effect of higher aluminum revenues was largely annulled by a sharp decline in copper realization, it added. Subsequent to a notification issued by the Ministry of Coal making applicability of contribution to District Mineral Foundation effective retrospectively from 12 January 2015, a one-time provision of Rs 60 crore has been made during Q2 September 2016 and is included in exceptional items.
Hindalco Industries said that the macroeconomic headwinds still continues and the uncertain global macro factors create several challenges. The price recovery is susceptible to imminent Chinese capacity additions and smelter restarts. The high level of imports persists to impact domestic sales volumes. Hindalco remains focused on operational excellence, higher value addition, customer centricity and cash conservation to tide over these issues.
Hindalco Industries’ board of directors permitted raising of long term finance by way of public or private offerings by means of equity or equity-linked instruments on preferential allotment basis through Qualified Institutional Placement, Rights Offer, Global Depository Receipts, American Depository Receipts and Foreign Currency Convertible Bonds of up to Rs 5000 crore.
A part of the Aditya Birla Group, Hindalco Industries is the world’s biggest aluminum rolling company and one of the largest producers of primary aluminum in Asia. Its copper smelter is amongst the largest single location custom smelter globally.
Hindalco is the top 500 recommendation by Dynamic Levels for the quarter. For the details on the stock, visit Hindalco share price history page of Dynamic Levels website.
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