Hindalco Industries Q3: Net profit drops 63% to Rs 1,362 crore

The revenue from operations came in at Rs 53,151 crore, up 6 percent YoY

Hindalco Industries on February 9 reported a consolidated net profit of Rs 1,362 crore for the quarter ended December 2022, down 63 percent against Rs 3,675 crore registered in the same quarter last year.

The revenue from operations came in at Rs 53,151 crore, up 6 percent from Rs 50,272 crore logged in the corresponding quarter a year ago, the company said in an exchange filing.

Profit and revenue were hit due to a below-par performance by its subsidiary Novelis. However, higher volumes and steady operational performance across India operations helped overall performance.

Also read: Hindalco tops optimism as China reopens, financials remain Street's top sectoral pick

The company said its copper business and aluminium downstream reported year-on-year (YoY) growth in EBITDA of 40 percent and 24 percent, respectively, driven by better pricing and recovery in domestic demand.

Hindalco reported a record total shipment of India's primary aluminium at 349 kilotonnes versus 345 kilotonnes, rising 1 percent year-on-year (YoY). Aluminium upstream EBITDA was at Rs 1,591 crore with EBITDA margins at 19.8 percent whereas, aluminium downstream EBITDA was at Rs 157 crore, up 24 percent YoY.

EBITDA per ton was at $210, up 7 percent YoY.

Also read: Novelis reports a weak quarter: What does this mean for Hindalco?

The company also recorded all-time high copper rod sales at 88 kilotonnes, up 24 percent YoY.

“Though the India Aluminium upstream business EBITDA came under pressure from the surge in input costs and lower realisations, this was partially offset by higher volumes,” said Satish Pai, Managing Director, Hindalco Industries.

“Novelis witnessed unprecedented inflationary pressures, unfavourable foreign exchange rates and lower shipments; this was partially offset by higher pricing and a favourable product mix," Pai added.

Pai further said that despite the hits of this quarter due to external factors, we believe the long-term story remains positive backed by our strong balance sheet and resilient business model.

Hindalco’s consolidated net debt to EBITDA stood at 1.60x as of December 31, 2022, against 1.62x as of December 31, 2021.