Hindalco Industries Ltd is expected to report a 3.5x increase in standalone net profit compared to last year while standalone revenue is expected to rise 65% in this quarter, helped by higher realizations and increased volumes in both its aluminium and copper businesses, experts said.
On a quarterly basis, the profits are expected to increase by 40% and revenues may improve by 20%, they said.
The largest aluminium player is scheduled to come out with its results for the July – September quarter of FY22 on November 12.
The flagship company of Aditya Birla Group had reported standalone profit after tax of Rs 198 crore in the corresponding quarter last year, with revenues of Rs 9,518 crore. In the previous quarter of this financial year, the net profit stood at Rs 910 crore with revenues of Rs 13,298 crore.
Analysts' estimates
ICICI Securities estimates Hindalco's domestic operations (standalone operations + Utkal) to report aluminium sales volume of ~330 kilo tonnes compared to 303 kilo tonnes in the same quarter last year and also in the previous quarter of this year.
The brokerage expects copper volumes of ~100 kilo tonnes in this quarter, compared to 75 kilo tonnes in the corresponding quarter of last year and 80 kilo tonnes in the first quarter of this year.
Aluminium prices are up by 55% compared to last year and 10% compared to previous quarter, while copper prices have increased 44% on a y-o-y basis but they are down 3% on a quarterly basis.
“We expect Hindalco's domestic operations topline to come in at Rs 15,752 crore, up 65% on a y-o-y basis and 18% on q-o-q basis”, said the brokerage.
It expects the EBITDA to increase by 128% y-o-y and by 11% q-o-q to Rs 2,901 crore in this quarter.
EBITDA margin is estimated at 18.4%, compared to 13.3% in the same quarter of last year and 19.6% in previous quarter of this year.
The will result in a three-fold rise in PAT to Rs 1,365 crore compared to last year and 30% increase from the previous quarter of this year.
Kotal Institutional Equities expects 74% y-o-y and 25% q-o-q increase in sales to Rs 16,673 in this quarter.
“We estimate India EBITDA at Rs 2,992 crore (+128% y-o-y, +24% q-o-q) on higher commodity prices and higher volumes in copper at 100,000 tons (+33% y-o-y, +25% q-o-q) and aluminum at 330,000 tons (+9% y-o-y, +9% q-o-q)”, the brokerage said.
Higher aluminium prices will help improve the EBITDA for aluminum business (including Utkal) by 146% y-o-y and 26% q-o-q to Rs 2,720 crore.
Improvement in EBITDA for copper business will be aided by both higher volumes and prices. “We expect copper EBITDA of Rs 280 crore (+33% y-o-y, +6% q-o-q)”, the brokerage added.
It estimates PAT to surge 350% y-o-y and 42% q-o-q to Rs 1,470 crore in this quarter.
“Alumimium production is expected to grow by 3.5% q-o-q to 330 kilo tonnes and copper production is expected to increase sharply by 52% q-o-q to 95 kilo tonnes”, Prabhudas Liladhar said.
Sales for the company are likely to increase 64% y-o-y and 17% q-o-q to Rs 15,587 crore.
The brokerage estimates the EBITDA (India business) to increase 177% y-o-y and 30% q-o-q to Rs 2,780 crore.
“Due to better realizations for both the metals, EBITDA for aluminium business is expected to expand 36% q-o-q to Rs 2,490 crore while EBITDA for copper business would increase by 11% q-o-q to Rs 290 crore.
This would lead to improvement in EBITDA margins to 17.5% in this quarter, from 10.4% in the same quarter last year and 15.8% in the preceding quarter .
The brokerage estimates a 4.7x y-o-y rise in net profit and 50% q-o-q to Rs 1,360 crore.
The Hindalco stock closed at Rs 453.95 on November 11 on the NSE, up Rs 4.2 from its previous close. The stock , which has generated returns of 122% in the past one year and 88% in this financial year, is down 7% in the last one month.
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