Hindalco Q3 Preview: Cons PAT may surge 82% YoY on strong profitability, Novelis outlook eyed
Hindalco Industries Ltd is seen reporting a strong double-digit growth in profit for the quarter ended December, led by robust operational performance on easing costs and better realisations.
The aluminium producer is likely to report an 82% year-on-year (YoY) growth in consolidated net profit for the quarter to Rs 2,545 crore, according to the average of estimates given by six brokerage firms.
Earnings before interest, taxes, depreciation and amortisation or EBITDA is expected to grow by 67% YoY to Rs 5,841 crore, but the topline is seen declining 0.5% to Rs 52,928 crore, the estimates showed.
The Aditya Birla Group’s flagship company is scheduled to release its quarterly numbers on Tuesday.
Here is a summary of the brokerage expectations from Hindalco and its US arm Novelis Inc. Novelis is scheduled to release its earnings later on Monday.
Motilal Oswal Securities
Novelis sales volumes are expected to be lower on a sequential basis. Novelis’ EBITDA/tonne guidance of $525/tonne is crucial. The timeline for the commissioning of multiple capex is crucial. We await management guidance on domestic aluminum demand along with the hedging position.
Kotak Institutional Equities
We estimate India EBITDA (standalone + Utkal) at Rs 26 billion (39% YoY, 8.3% QoQ), aluminum EBITDA (including Utkal) of Rs 20.5 billion (55% YoY, 17% QoQ) led by lower costs and sequentially higher aluminium prices, and copper EBITDA of Rs 5.5 billion (0.8% YoY, -16% QoQ) led by resilient TcRcs and a high sequential base.
We estimate Novelis
