Hot Pursuit     13-Feb-24
Hindalco Inds Q3 PAT climbs 71% YoY to Rs 2,331 cr
The Aditya Birla Group company’s consolidated net profit climbed 71.14% to Rs 2,331 crore in Q3 FY24 as against with Rs 1,362 crore posted in Q3 FY23.
The growth in net profit was driven by a robust performance across aluminium and copper business segments.

Revenue from operations declined 0.64% year on year to Rs 52,808 crore during the quarter.

The company’s profit before tax stood at Rs 3,328 crore in Q3 FY24, steeply higher from Rs 1,214 crore posted in Q3 FY23.

EBTIDA stood at Rs 6,322 crore in Q3 FY24, registering the growth of 60.86% as compared with Rs 3,930 crore posted in same quarter last year.

Consolidated Net Debt to EB ITDA stood at 1.43x as of 31 December 2023 versus 1.6x as of 31 December, 2022. The company maintained a strong balance sheet and liquidity with a consolidated Net Debt to EBITDA ratio well below 2x, positioning it well for organic growth.

Novelis’ revenue stood at $3.9 billion in Q3 FY24, down 6% YoY, impacted by lower average aluminum prices. Novelis reported an adjusted EBITDA of $454 million in Q3 FY24, up 33% YoY driven by favourable metal benefit from recycling, higher pricing, and lower operating costs. Novelis’ adjusted EBITDA per ton, at $499, was up 33% YoY.

Aluminium upstream revenue was at Rs 7,971 crore in Q3 FY24, down 1.15% from Rs 8,064 crore in Q3 FY23. Downstream third quarter revenue was at Rs 2,547 crore in Q3 FY24, down 3.77% from Rs 2,647 crore in Q3 FY23. Sales of downstream aluminium stood at 90 Kt in Q3 FY24 as compared to 91 Kt in Q3 FY23, flat YoY.

Revenue from the copper business stood at Rs 11,954 crore, up 16% YoY, driven by higher sales volumes and prices. Copper metal sales were 119 Kt in Q3 FY24 as compared to 109 Kt posted in Q3 FY23. Copper continuous cast rod (CCR) sales were at 93 Kt in the third quarter of FY24; up 6% YoY supported by growing market demand for value-added products and increased utilization of our rod mills.

“Novelis signs new contracts with Ball Corporation, Coke and Ardagh for beverage packaging for the upcoming Bay Minette facility in the US. While the capital expenditure for the Bay Minette project has escalated primarily due to higher civil and construction costs than initially estimated, the strategic rationale remains firmly in place. This investment provides a first mover advantage, with a highly efficient facility that is being built as a long-term investment. Once established this capacity can be doubled in a cost and time-efficient manner, as experienced in various other brownfield projects,” the company stated in press release.

Meanwhile, the company’s board re-appointed Satish Pai as managing director (MD) & key managerial personnel of the company with effect from 1 August 2024 to 31 December 2027.

Further, the board has also re-appointed Praveen Kumar Maheshwari as whole-time director of the company will effect from 1 August 2024 to 31 December 2027.

Satish Pai, managing director, Hindalco Industries, said, “We continue to stay on our growth track despite challenging market conditions, delivering a strong performance, driven by an enhanced product mix and lower input costs across our businesses.

The copper business registered a record EBITDA, up 20% YoY on the back of strong volume growth and robust operations. The aluminium upstream business EBITDA rose 54% YoY, supported by stable operations and lower raw material costs, which keeps us positioned in the first quartile of the global cost curve. We continue to invest in promising growth areas both in aluminium and copper downstream. Our overseas business and global recycling leader Novelis showed 33% YoY improvement in EBITDA and EBITDA per ton, driven by favourable metal benefit from recycling, higher pricing, and lower operating costs.

Robust cash generation in India operations enables further deleveraging of our India business; Hindalco has pre-paid long-term loans of ₹4,370 crores during the year amid a high-interest rate scenario. On the ESG front, our first-of-its-kind energy transition initiative is on course to begin rampup of 100 MW of round-the-clock carbon-free power for our Odisha smelter, by Q4 of CY2024.”

Hindalco Industries, the metals flagship of the Aditya Birla Group, is the world's largest aluminium rolling and recycling company, a major copper player, and one of Asia's largest producers of primary aluminium. In India, Hindalco's aluminium manufacturing units cover the complete value chain, from bauxite mining, alumina refining, coal mining, captive power generation and aluminium smelting, to downstream value-addition of aluminium rolling, extruding, and foil making.

Share of Hindalco Industries tumbled 12.28% to Rs 510.85 on the BSE.

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