Aluminum and copper producer Hindalco Industries Ltd. posted a 28% year-on-year decrease in earnings for the first quarter of its fiscal 2020 to 10.63 billion Indian rupees, amid lower commodity prices and the global economic slowdown.
EBITDA fell 13% to 37.69 billion rupees while revenue decreased to 299.72 billion rupees from 310.78 billion rupees the year before, according to the Aug. 9 release.
EBITDA in its aluminum segment was hit particularly hard, falling to 8.89 billion rupees from 15.32 billion rupees year over year. Depreciation and impairment losses grew to 12.35 billion rupees in the June quarter from 11.47 billion rupees the year before, including an exceptional loss of 218 million rupees.
Adjusted EBITDA at Hindalco's Novelis Inc. unit rose 11% to a record high of US$372 million in the quarter, thanks to a 4% increase in shipments to 830,000 tonnes and favorable pricing for its products. Its revenue was down 6% year on year to US$2.9 billion due to lower average base aluminum prices.
Hindalco's aluminum metal sales rose 7% to 320,000 tonnes with copper continuous cast rod output up 2% to a quarterly record of 66,000 tonnes.
The company said it expected to close its US$2.6 billion takeover of Aleris Corp. in the third quarter of its fiscal year. European competition regulators have been scrutinizing the deal, and are expected to decide on the case by Sept. 16, though reports have suggested their approval may hinge on Novelis offering concessions to address competition concerns.
As of Aug. 8, US$1 was equivalent to 70.50 Indian rupees.