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Hindalco Q3 profit seen up 26% to Rs 420 cr: CNBC-TV18 Poll

Aluminium major Hindalco Industries will announce its third quarter earnings on Thursday. Profit after tax is expected to increase 26 percent year-on-year to Rs 420 crore led by strong revenue and operating income, according to a CNBC-TV18 poll. However, higher depreciation and interest costs may restrict profitability.

Hindalco Q3 profit seen up 26% to Rs 420 cr: CNBC-TV18 Poll

Aluminium major  Hindalco Industries will announce its third quarter earnings on Thursday. Profit after tax is expected to increase 26 percent year-on-year to Rs 420 crore led by strong revenue and operating income, according to a CNBC-TV18 poll. However, higher depreciation and interest costs may restrict profitability.

Revenue may increase 21 percent to Rs 8,730 crore during October-December quarter from Rs 7,201 crore in same quarter last fiscal, driven by higher aluminum volumes.

Aluminum volumes may be driven by ramp-up at Utkal refinery and Hirakud and Mahan smelters. Analysts see benefit from higher aluminum realizations. However, copper volumes may be flattish Y-o-Y due to maintenance shutdown in December.

Operating profit (EBITDA) is seen rising 49 percent year-on-year to Rs 940 crore and margin may expand 208 basis points to 10.8 percent during the quarter, led by improved performances from both the aluminium and copper segments. Aluminum EBITDA accretion from incremental volumes could be limited due to high cost of production and ramp up costs at Aditya smelter.

Key issues to watch out for would be upcoming auction of coal blocks, aluminum price movement & TC/RC trends, and resolution of bauxite mining issue in Jharkhand.

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