New Delhi, Jun 12 (PTI) Hindalco Industries on Friday posted a 43.2 per cent decline in consolidated profit to Rs 668 crore for the quarter ended on March 31, 2020, due to lower income.
The company had posted a consolidated profit of Rs 1,178 crore in the year-ago period, Hindalco Industries said in a filing to BSE.
Consolidated income during the January-March quarter dropped to Rs 29,624 crore, over Rs 34,255 crore in the corresponding quarter of FY2018-19, the Aditya Birla Group company said in a statement.
“We are confident our business model and strategic critical investments will strengthen business for the long-term. Volatile environments will continue to test the industry but we believe our strategic focus on future proofing operations will continue to raise our performance above the sector,” Hindalco Industries Ltd Managing Director Satish Pai said.
The company said that despite rising uncertainty on account of COVID-19, Novelis recorded its best-ever EBITDA, while the Indian aluminium business delivered EBITDA margins for the quarter and full-year, that outperformed the industry.
The company said that as part of continuous process manufacturing, Hindalco’s four aluminium smelters and the Utkal alumina refinery in the country operated at near full capacity during the lockdown.
The company’s coal and bauxite mines also operated at regular scale. More than 80 per cent of the total output is being exported to minimise inventory build-up and to absorb plant fixed costs.
Aluminium downstream plants had shut down initially, except for two that continued to operate and serve essential sector customers. Downstream operations have resumed at reduced capacity to meet existing market demand.
After initial temporary shutdowns, “Hindalco’s Copper smelters…have restarted operations and are now stabilising to reach optimal levels,” it said.
In the US, Novelis has experienced increased disruption to its global aluminium production and supply chain including the shutdown of some of its plants due to government decrees and some customers temporarily shutting down their own manufacturing facilities.
In spite of the operational challenges, Hindalco continued to serve its customers in essential industries, by reorienting supply chains to offer uninterrupted supplies from its warehouses and its operating plants.
During the lockdown, Hindalco produced aluminium foil for pharmaceutical packaging of Chloroquine Phosphate and Hydroxychloroquine sulphate tablets and other critical drugs.
Hindalco aluminium was used in manufacturing components of life-saving ventilators, components of X-ray and CT scan machines, COVID testing booths and other hospital equipment, Personal Protection Equipment (PPE) kits and sanitiser stands.
Hindalco-Novelis prioritised the health and safety of the workforce by providing work-from-home option to majority of employees in offices, running plant operations with reduced staff, the company noted.
The company continues to take all possible precautions to keep infections at bay.
The company is managing 51 quarantine centres, and has converted its hospital at Utkal Alumina in Odisha into a Level-1 COVID hospital.
The company’s Renukoot plant hospital in Uttar Pradesh has been notified for preparedness as a Level-2 COVID hospital.