Aluminium and copper manufacturing company Hindalco will report its fourth-quarter earnings on Thursday and analysts expect margins will be impacted due to lower alumunium profit and lower TC/RC (treatment and refining charge).

Hindalco’s sales is expected to come in lower by around 1-2 percent. Operating profit will see a compression of around 22 percent and the margins should come in at around 8.5 percent from around 10.5 percent on a year-on-year (YoY) basis.

The analysts expect a net profit of around Rs 230 crore.

Topline To Be Impacted By

-Lower Aluminium prices

-Lower Copper production volumes

Q4FY19: Aluminium Business

-Partly protected due to favourable hedges

-Favourable hedges offset some of the impacts of lower Aluminium prices on earnings.

Margins To Be Impacted By

-Lower Aluminium profit

-Lower Tc/Rc margins and by-product realisations