Aditya Birla Group flagship Hindalco Industries Limited (Hindalco) reported a 40.4 percent decline in its consolidated net profit to Rs 2,454 crore for the first quarter ended June 2023 from Rs 4,119 crore recorded a year ago. On a sequential basis, the profit remained flat at 1.7 percent from Rs 2,411 crore earned during the January - March period.
Consolidated revenue for the company fell 8.3 percent on-year to Rs 53,382 crore, as against Rs 58,229 crore a year ago, and 5 percent from Rs 56,209 crore recorded in the previous quarter, the company said on August 8.
Revenue from operations fell 8.6 percent to Rs 52,991 crore from Rs 58,018 crore, registered last year.
The company said the decline in revenue was on account of "unfavourable macros and subdued volumes".
The earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter at Rs 6,109 crore declined 29.2 percent on-year from Rs 8,640 crore.
Novelis, the aluminium subsidiary of Aditya Birla Group's Hindalco Industries, recorded a 19.6 percent decline in revenue to $4.1 billion from $5.1 due to lower average aluminium prices and shipments.
"FY24 has started on a promising note. Our focus on expanding our value-added portfolio and operational efficiencies has enabled us to deliver a sustained performance in the face of continued macroeconomic pressures. An enhanced product mix saw the aluminium India downstream
business generating higher value, with Q1 EBITDA increasing by 31 percent QoQ (quarter-on-quarter)," said Satish Pai, Managing Director, Hindalco Industries.
He said that despite significant market headwinds, Novelis continued to show sequential improvement in adjusted EBITDA and EBITDA per tonne, backed by record sales of automotive aluminium sheets. The copper business achieved record metal sales and maintained its market share despite undergoing a planned shutdown, he said.
"We will continue to strongly position our company for the future, by maintaining our focus on ESG, controlling costs, securitising resources, and driving downstream expansion," Pai said.
After the financial results were announced, Hindalco shares fell more than 2.4 percent to Rs 453.75 on the NSE at 2pm on August 8.
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