Hindalco share price: The stock dropped more than 4% during the session

Hindalco Industries on Friday reported a net profit of Rs 1,063 crore for the April-June period. Its net profit declined 27.93 per cent compared to the corresponding period a year ago, according to a regulatory filing by the company during market hours. Hindalco - an Aditya Birla Group company - said its revenue from operations stood at Rs 29,972 crore in the first quarter of the current financial year, marking a decline of 3.56 per cent compared to the year-ago period. (Track Hindalco share price)

While profits were impacted by the global downturn and lower commodity prices, Hindalco held its ground and delivered a steady performance, the company said.

The company said its earnings before interest, tax, depreciation and amortization (EBITDA) fell 13.04 per cent to Rs 3,769 crore in the quarter ended June 30, 2019.

“We continued to maintain our strong position in aluminium and copper in Q1 FY20 despite headwinds. The resilient performance owes as much to our backward integration, resource security, strong balance sheet, operational capabilities and rich product portfolio,” said Satish Pai, managing director, Hindalco Industries.

Hindalco said the adjusted EBITDA of its wholly-owned subsidiary, Novelis, grew 11 per cent to a record high of $372 million in the first quarter of financial year 2019-20, driven by higher shipments coupled with favourable price and product mix.

Novelis's performance was partially offset by less favourable recycling benefits due to lower aluminium prices, Hindalco added.

Hindalco shares, which swung between gains and losses earlier in the session, dropped as much as 4.23 per cent after the earnings announcement by the company. At 2:30 pm, Hindalco shares traded 3.34 per cent lower at Rs 175.00 apiece on the BSE, underperforming the benchmark Sensex index which was up 0.73 per cent backed by buying across sectors.

Hindalco Industries is the metals flagship company of the Aditya Birla Group.