InvestorQ : Why did Hindalco slip into a loss in the Jun-20 quarter?
Dilmini Mercia made post

Why did Hindalco slip into a loss in the Jun-20 quarter?

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Dawn Cherian answered.
3 months ago
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Hindalco reported a net loss of Rs.40 crore the Jun-20 quarter on a standalone basis. It had reported net profit of Rs.23 crore in the Jun-19 quarter. Revenues on a standalone basis were 26% lower at Rs.7420 crore for the Jun-20 quarter.

Copper cathode production in the quarter was substantially impacted by disruptions in operations due to COVID-19. In fact, revenues for the copper business fell by 34% and copper accounts for nearly 40% of the total Hindalco top line business.

Aluminium, which accounted for the balance 60%, saw revenues fall by 19% to Rs.4436 crore in the Jun-20 quarter. EBITDA was higher showing operating leverage. The profit and sales numbers were lower than street expectations.

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