Aditya Birla Group flagship Hindalco Industries Limited reported consolidated net profit for Q2 FY24 at Rs 2,196 crore, missing street estimates. Hindalco Q2 net was almost flat compared to Rs 2,205 crore in the same quarter previous year.
Consolidated revenue from operations for the company fell 3.6 percent on-year to Rs 54,169 crore, as against Rs 56,176 crore a year ago; revenue increased 2 percent from Rs 52,991 crore recorded in the previous quarter, the company said on November 10.
Analysts had estimated consolidated profit after tax (PAT) to be around Rs 2,668.10 crore, up 21 percent year on year and 9 percent higher quarter on quarter. The consolidated revenues were projected to be at Rs 53,558.60 crore, down 5 percent from Rs 56,176 crore a year ago, according to a poll of brokerages conducted by Moneycontrol.com.
During the July-September quarter, the company benefited from falling coal prices, coupled with recovery in the consumer durables as destocking activity subsided, cushioning the profits.
Hindalco shares traded almost flat at 483.9 rupees as at 14:30 IST.
Hindalco performance in the quarter
The earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter was at Rs 6,096 crore, up 6 percent year-on-year. Analysts had expected EBITDA to be at Rs 6007.50 crore.
"We have maintained momentum driven by our focus on cost control and a solid performance by all our downstream segments," said Managing Director Satish Pai.
Analysts had projected increased domestic sales volumes for Hindalco in copper and aluminium. The accumulation of lower-cost coal inventory and captive mines to enhance margins.
"We believe HNDL is adding downstream capacities at the right time to capture the robust growth opportunities. Despite near-term headwinds due to a slowdown in China and its impact on non-ferrous prices, the long-term outlook remains positive" Brokerage Motilal Oswal said in a note in September.
Pai added that the company's copper business delivered its" best-ever" quarterly results backed by record metal sales while Aluminium India upstream EBITDA rose by 7% over the first quarter supported by higher volumes and lower input costs.
Hindalco’s US arm Novelis’ business
The sustainable aluminium solutions provider saw sequential improvement in Adjusted EBITDA, driven by initial demand recovery in the unit's core beverage packaging sheet end market.
On November 7, the company reported an Adjusted EBITDA of $484 million for Q2FY24 compared with $479 reported in the previous quarter. However, it dropped 4 percent Y-O-Y primarily driven by lower shipments, less favourable metal benefit from recycling, and a prior year's favourable impact from capitalising high operating costs into inventory.
Net sales for the quarter also decreased 14 percent versus the prior year period to $4.1 billion impacted by lower aluminium prices and a 5 percent decrease in total flat rolled product shipments.
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