Hindalco Industries Ltd. share price target

Strong performance in North America drives beat Motilal Oswal values your support in the Asiamoney Brokers Poll 2019 for...

Interest, Tax, Depreciation and Amortisation) at Rs.16,627 crore, up 11 per cent in FY19 compared to the prior year. This buoyant performance was driven by stable operations, supporting macros and improved efficiencies. Consolidated Profit before Tax (and Before Exceptional Items) for FY19 rose to Rs.8,083 crore, up 24 per cent compared to FY18. Profit After Tax soared to Rs.5,495 crore (Rs.4,518* in FY18), an increase of 22 percent....

For Q4FY19, Novelis reported shipments of 870 KT, up 1% YoY. Net sales during the quarter increased 1% YoY to US$3.1 billion while adjusted EBITDA came in at US$357 million, up 12% YoY. Corresponding EBITDA/tonne was at US$410/tonne. While Novelis reported a steady performance for Q4FY19, on account of the slowdown witnessed in the global auto sector (especially China), we maintain our cautious stance on the company. Hence, we model an EBITDA/tonne of US$350/tonne for both the...

business and value added products would increase by ~500bps to 75% (in EBITDA) by FY20e. Backed by strong business model and attractive valuations, we maintain Accumulate with TP of Rs224 (earlier Rs245), EV/EBITDA of 5.3x FY21E (earlier 6x FY20E). Higher costs drags down the earnings: AL/Cu sales volumes came in line with our est. at 325kt/100kt (PLe: 325kt/105kt), up 0.6%/+1% QoQ (up 1.2%/7.4% YoY). Due to higher than expected input costs, AL biz EBITDA came below out est. at Rs10.4bn (PLe:Rs11.1bn). Cu division's EBITDA fell 27% QoQ (4.3% YoY) at...

Operationally in line; Ali margins down on higher cost Cutting estimates given lower LME Hindalco India (standalone + Utkal): 4QFY19 EBITDA declined 15% QoQ to INR13.6b (in-line) due to lower margins in aluminum and certain one-time expenses in copper. Finance cost was down 4% QoQ (-8% YoY) to INR4.5b. Other income increased 79% QoQ/75% YoY to INR3.7b, led by mark-to-market gains on...

Healthy volumes and favorable spreads drive perf. FCF generation remains strong; Reiterate Buy Novelis delivered another strong quarter. Adj. EBITDA increased 12% QoQ to USD357m (our estimate: USD319m), as volumes grew 9% QoQ (+8% YoY) to 870kt and EBITDA/t improved (from an already strong base) by 2% QoQ to...

ICICI Securities Ltd | Retail Equity Research Hindalco reported a steady state Q3FY19 performance. Domestic operations posted a topline of | 11938 crore (up 8% YoY, 10% QoQ, higher than our estimate of | 10849.5 crore). Aluminium segment reported sales of 323000 tonnes (vs. our estimate of ~330000 tonne)...

Depreciation and Amortisation) at Rs.1,926 crore in Q3 FY19, rose by 4 percent compared to Q3 FY18. This is on the back of supporting macros, improvement in operational efficiencies and better realisations. This was despite increase in input costs, mainly of coal and furnace oil. Interest expense was lower by 12 per cent at Rs.477 crore, mainly due to re-pricing of long term project loans and loan re-payments. Profit After Tax stood at Rs.713 crore in Q3 FY19, up 47 per cent vs Rs.484 crore in Q3 FY18, driven by higher EBITDA and lower finance costs. Net debt to...

12 February 2019 3QFY19 EBITDA of INR17.2b (-1% QoQ) came in 5% higher than our estimate of INR16.7b owing to the better-than-expected copper business performance. Finance cost was flat QoQ at INR4.8b, while other income increased 13% QoQ to INR2.1b. PAT declined 2% QoQ to INR7.1b (consol. PAT up by 45% YoY to INR46b YTD). lower LME prices, partly offset by lower cost of production and positive hedging impact (+INR900m). Aluminum production and sales were largely stable QoQ at 324kt and 323kt, respectively. Aluminum CoP reduced by USD59 QoQ with input costs reaching peak levels. CoP in 4Q is expected to be flat or slightly lower, given the fall in CPC and caustic prices, and flattish oil and coal costs. Copper production increased 46% QoQ to 105kt post maintenance shutdown. Sales rose 25% QoQ to 99kt.

Hindalco delivered a strong set of results amid challenging times both domestically as well as internationally. Globally, aluminium prices at the LME remained depressed, while dumping of aluminium by China as well as FTA countries continued unabated. Revenue at Rs119.38 bn was higher by 8% on a yoy basis and 10% sequentially, driven by higher copper price and volumes. Aluminium was down 4.4% sequentially to $1968/t. Standalone EBITDA (incl. Utkal Alumina) of Rs19.26bn was higher by 4% yoy and 2% qoq, powered by higher EBITDA from the copper division. Reported PAT (Standalone incl. Utkal Alumina) was Rs7.13 bn (higher on a yoy basis by...