Hindalco Industries Limited (Hindalco) reported a 47.8 percent rise in its consolidated net profit to Rs 4,119 crore for the first quarter ended June 2022 as against Rs 2,787 crore recorded a year ago. On a sequential basis, the profit has increased 7 percent from Rs 3,851 crore earned during the January - March period. This was by far the highest quarterly consolidated PAT for the company.
Consolidated revenue for the Aditya Birla Group flagship company in India rose 40.3 percent on-year to Rs 58,018 crore, as compared to a revenue of Rs 41,358 crore registered in the year-ago quarter, the company said on August 10. On a sequential basis, the revenue scaled 4 percent from Rs 55,764 crore recorded in the previous quarter.
The results were driven by an excellent performance by Novelis, and a robust performance by aluminium downstream and copper businesses, supported by operational efficiencies and higher volumes.
Novelis reported its best-ever quarterly EBITDA and EBITDA per tonne primarily due to higher product pricing, favourable product mix and recycling benefits.
“After the record profitability of the fourth quarter, I am pleased to share that we delivered an even stronger first quarter despite rising input costs and inflationary pressures and our performance was backed by strong operational efficiencies and pre-emptive sourcing of critical raw material, thus ensuring stable operations and higher margins,” said Hindalco Managing Director Satish Pai.
The company’s business model supports its position as an integrated aluminium producer with one of the world’s best EBITDA margins, Pai added. “Our product mix enhancement strategy is working well with the Aluminium Downstream EBITDA growing four-fold YoY while Novelis reported its highest ever EBITDA per ton driven by higher product pricing, favourable product mix and higher recycling benefits,” Pai said.
The company remains focused on riding all market cycles with its greener, stronger, smarter approach.
The EBITDA for the quarter at Rs 8,640 crore jumped 27 percent on-year and was its highest ever EBITDA achieved in any quarter. The growth was driven by better operating efficiencies, better macros and strong performance from both its Aluminium Downstream and Copper businesses.
The revenues for the business jumped 32 percent on year to $5.1 billion mainly driven by higher global aluminium prices. The volumes were however impacted by the supply chain disruptions and were down to 962 kilo tonnes (kt) compared to 973 kt shipped during the same period last year.
The EBITDA for the business improved marginally by 1 percent on year to $561 million as compared $555 million achieved during the same period a year ago while the EBITDA per ton improved to $583 per ton compared to $570 achieved a year ago.
Aluminium upstream revenues increased by 41 percent on year to Rs 8,699 crore on higher volumes and better realizations & macros. Consequently, the EBITDA for the business also improved by 41 percent on year to Rs 3,272 crore and was driven by better operational efficiencies partially offset by rise in input costs. The EBITDA margins for the quarter stood at 38 percent.
The downstream revenues were higher by 19 percent on year at Rs 2,740 crore with the EBITDA for the business growing by 4 folds to Rs 158 crore from Rs 39 crore a year ago. The EBITDA per ton also witnessed a corresponding growth to $261 from $64 in the prior year.
The copper business witnessed an improvement of 48 percent on year to Rs 10,529 crore due to higher volumes and rise in global prices. EBITDA for the business more than doubled to Rs 565 crore from Rs 261 crore achieved during the same period last year. The EBITDA growth was aided by higher volumes in domestic market and better operational efficiencies.
The company has undertaken debottlenecking project at its Utkal Alumina plant which will add 350 kt to its capacity while Novelis has started strategic capital investment projects worth $3.4 billion.Hindalco was trading Rs 10.4 higher at Rs 431.80 at 1.55pm on August 10 at The National Stock Exchange. The stock has generated returns of 21 percent over the past one month.