|
Hindalco Industries consolidated net sales
declined 0.65% to Rs 52808 crore in Q3FY24 compared to Q3FY223. Sales of Novelis has gone down 6% to Rs 32749
crore (accounting for 59% of total sales).
Sales of Aluminium upstream fell 1% to Rs 7971 crore (accounting for 14%
of total sales). Sales of Aluminium
downstream has gone down 4% to Rs 2547 crore (accounting for 5% of total
sales). Sales of Copper segment was up
16% to Rs 11954 crore (accounting for 22% of total sales). Inter-segment sales fell 5% to Rs Rs 2413
crore.
Profit before interest, tax and other
unallocable items (PBIT) has jumped 36% to Rs 6985 crore. PBIT of Novelis rose 33% to Rs 3783 crore
(accounting for 54% of total PBIT). PBIT
of Aluminium upstream rose 54% to Rs 2443 crore (accounting for 35% of total
PBIT). PBIT of Aluminium downstream fell
34% to Rs 103 crore (accounting for 1% of total PBIT). PBIT of Copper segment rose 20% to Rs 656
crore (accounting for 9% of total PBIT).
PBIT margin of Novelis rose from 8.2% to
11.6%. PBIT margin of Aluminium upstream
rose from 19.8% to 30.6%. PBIT margin of
Aluminium downstream fell from 5.9% to 4%.
PBIT margin of Copper segment rose from 5.3% to 5.5%. Overall PBIT margin rose from 9.2% to
12.6%.
Operating profit margin has jumped from 6.68%
to 11.11%, leading to 65.30% rise in operating profit to Rs 5,865.00
crore. Raw material cost as a % of total
sales (net of stock adjustments) decreased from 62.29% to 59.59%. Purchase of finished goods cost fell from
1.89% to 1.34%. Employee cost increased
from 6.21% to 7.30%. Other expenses
fell from 22.85% to 20.63%. Power and
Oil fuel cost fell from 8.53% to 6.60%.
Provisions writeoffs cost rose from 0.12% to 0.35%. Other provisions rose from 0.12% to
0.35%.
Other income fell 23.50% to Rs 280 crore. PBIDT rose 57% to Rs 6145 crore. Provision for interest rose 1.07% to Rs 944
crore.
PBDT rose 74.53% to Rs 5201 crore. Provision for depreciation rose 6% to Rs 1874
crore.
Profit before tax grew 174.50% to Rs 3,327.00
crore. Share of profit/loss was 50%
lower at Rs 1 crore. Provision for tax
was debit of Rs 997 crore, compared to credit of Rs 148 crore. Effective tax rate was 29.96% compared to
negative 12.19%.
Minority interest was nil in both the
periods. Net profit attributable to owners
of the company increased 71.15% to Rs 2,331.00 crore.
Promoters’ stake was 34.64% as of 31 December
2023 ,compared to 34.64% as of 31 December 2022.
Commenting
on the results, Mr. 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 Rs 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 ramp-up of 100 MW of round-the-clock carbon-free power
for our Odisha smelter, by Q4 of CY2024.”
Business
Segment Performance in Q2FY24 (vs Q2FY23)
Novelis: Total shipments of
flat rolled products were at 910 Kt in Q3 FY24 vs 908 Kt in Q3 FY23, flat YoY.
Novelis’ revenue stood at $3.9 billion (vs $4.2 billion), down 6% YoY, impacted
by lower average aluminum prices. Novelis reported an adjusted EBITDA of $454
million (vs $341 million), 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
(India):
Upstream revenue was Rs 7,971 crore in Q3 FY24 vs Rs 8,046 crore in Q3 FY23.
Aluminium Upstream EBITDA stood at Rs 2,443 crore in Q3 FY24, compared to Rs 1,591
crore in Q3 FY23, up 54% YoY driven by lower input costs. Upstream EBITDA
margins were at 30.7% and continue to be one of the best in the global
industry.
Downstream third quarter revenue was Rs 2,547
crore vs Rs 2,647 crore in Q3 FY23. Sales of Downstream Aluminium stood at 90
Kt vs 91 Kt in Q3 FY23, flat YoY. Downstream EBITDA was Rs 103 crore in Q3 FY24
compared to Rs 157 crore for Q3 FY23, down 34% YoY, majorly impacted by
unfavourable product mix and lower realizations.
Copper: Revenue from the
Copper Business stood at Rs 11,954 crore, up 16% YoY, driven by higher sales
volumes and prices. EBITDA for the Copper Business was at an all-time high of Rs
656 crore in Q3 FY24 compared to Rs 546 crore in Q3 FY23, up 20% YoY backed by higher
shipments and robust operations. Copper metal sales were 119 Kt (vs 109 Kt).
Copper Continuous Cast Rod (CCR) sales were at 93 Kt (vs 88 Kt), up 6% YoY
supported by growing market demand for value-added products and increased
utilization of our rod mills.
For
year-to-date (YTD) results analysis
Net sales (including other operating income)
of Hindalco Industries has declined 4.41% to Rs 159968 crore. Sales of Novelis has gone down 11% to Rs
100316 crore (accounting for 60% of total sales). Sales of Aluminium upstream fell 4% to Rs
23913 crore (accounting for 14% of total sales). Sales of Aluminium downstream has gone down
8% to Rs 7611 crore (accounting for 5% of total sales). Sales of Copper segment was up 18% to Rs
35897 crore (accounting for 21% of total sales). Inter-segment sales fell 10% to Rs Rs 7769
crore.
Profit before interest, tax and other
unallocable items (PBIT) rose 2% to Rs 19950 crore. PBIT of Novelis was flat at Rs 11237 crore
(accounting for 56% of total PBIT). PBIT
of Aluminium upstream rose 4% to Rs 6452 crore (accounting for 32% of total
PBIT). PBIT of Aluminium downstream fell
18% to Rs 421 crore (accounting for 2% of total PBIT). PBIT of Copper segment rose 11% to Rs 1840
crore (accounting for 9% of total PBIT).
PBIT margin of Novelis rose from 10% to
11.2%. PBIT margin of Aluminium upstream
rose from 24.9% to 27%. PBIT margin of
Aluminium downstream fell from 6.2% to 5.5%.
PBIT margin of Copper segment fell from 5.4% to 5.1%. Overall PBIT margin rose from 11.1% to
11.9%.
Operating profit margin has jumped from
10.36% to 10.75%, leading to 0.85% decline in operating profit to Rs 17,191.00
crore. Raw material cost as a % of total
sales (net of stock adjustments) decreased from 61.55% to 61.21%. Purchase of finished goods cost rose from
0.86% to 1.02%. Employee cost increased
from 5.72% to 6.88%. Other expenses
fell from 21.44% to 20.16%. Power and
Oil fuel cost fell from 8.12% to 6.78%.
Provisions writeoffs cost rose from 0.07% to 0.14%. Other provisions rose from 0.07% to 0.14%.
Other income rose 25.30% to Rs 1134
crore. PBIDT rose 0.44% to Rs 18325
crore. Provision for interest rose
11.65% to Rs 2970 crore.
PBDT fell 1.47% to Rs 15355 crore. Provision for depreciation rose 5.22% to Rs
5503 crore.
Profit before tax down 4.85% to Rs 9,852.00
crore. Share of profit/loss was 57.14%
lower at Rs 3 crore. Extraordinary items
were decreased to Rs 21.00 crore.
Provision for tax was expense of Rs 2895 crore, compared to Rs 2716
crore. Effective tax rate was 29.31%
compared to 26.11%.
Minority interest was nil in both the
periods. Net profit attributable to
owners of the company decreased 9.17% to Rs 6,981.00 crore.
Promoters’ stake was 34.64% as of 31 December
2023 ,compared to 34.64% as of 31 December 2022 .
The scrip is currently trading at Rs 510.
|
Hindalco Industries : Consolidated
Results
|
|
Particulars
|
2312
(03)
|
2212
(03)
|
Var.(%)
|
2312
(09)
|
2212
(09)
|
Var.(%)
|
2303
(12)
|
2203
(12)
|
Var.(%)
|
|
Net
Sales
|
52,808
|
53,151
|
-1
|
1,59,968
|
1,67,345
|
-4
|
2,23,202
|
1,95,059
|
14
|
|
OPM
(%)
|
11.1
|
6.7
|
|
10.8
|
10.4
|
|
10.2
|
14.5
|
|
|
OP
|
5,865
|
3,548
|
65
|
17,191
|
17,339
|
-1
|
22,666
|
28,347
|
-20
|
|
Other
Inc.
|
280
|
366
|
-24
|
1,134
|
905
|
25
|
1,257
|
1,136
|
11
|
|
PBIDT
|
6,145
|
3,914
|
57
|
18,325
|
18,244
|
0
|
23,923
|
29,483
|
-19
|
|
Interest
|
944
|
934
|
1
|
2,970
|
2,660
|
12
|
3,646
|
3,768
|
-3
|
|
PBDT
|
5,201
|
2,980
|
75
|
15,355
|
15,584
|
-1
|
20,277
|
25,715
|
-21
|
|
Depreciation
|
1,874
|
1,768
|
6
|
5,503
|
5,230
|
5
|
7,086
|
6,729
|
5
|
|
PBT
|
3,327
|
1,212
|
175
|
9,852
|
10,354
|
-5
|
13,191
|
18,986
|
-31
|
|
Share
of Profit/(Loss) from Associates
|
1
|
2
|
-50
|
3
|
7
|
-57
|
9
|
6
|
50
|
|
PBT
before EO
|
3,328
|
1,214
|
174
|
9,855
|
10,361
|
-5
|
13,200
|
18,992
|
-31
|
|
EO
Income
|
0
|
0
|
-
|
21
|
41
|
-49
|
41
|
582
|
-93
|
|
PBT
after EO
|
3,328
|
1,214
|
174
|
9,876
|
10,402
|
-5
|
13,241
|
19,574
|
-32
|
|
Taxation
|
997
|
-148
|
PL
|
2,895
|
2,716
|
7
|
3,144
|
5,373
|
-41
|
|
PAT
|
2,331
|
1,362
|
71
|
6,981
|
7,686
|
-9
|
10,097
|
14,201
|
-29
|
|
Minority
Interest (MI)
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
Net
profit
|
2,331
|
1,362
|
71
|
6,981
|
7,686
|
-9
|
10,097
|
14,201
|
-29
|
|
EPS
(Rs)*
|
#
|
#
|
|
#
|
#
|
|
44.8
|
61.3
|
|
|
Notes
|
|
*
EPS is on current equity of Rs 224.72 crore, Face value of Rs 1, Excluding
extraordinary items.
|
|
#
EPS is not annualised
|
|
bps
: Basis points
|
|
EO
: Extraordinary items
|
|
Figures
in Rs crore
|
|
Source:
Capitaline Corporate Database
|
|
Hindalco Industries : Consolidated
Segment Results
|
|
|
%
of (Total)
|
2312
(03)
|
2212
(03)
|
Var.(%)
|
%
of (Total)
|
2312
(09)
|
2212
(09)
|
Var.(%)
|
%
of (Total)
|
2303
(12)
|
2203
(12)
|
Var.(%)
|
|
Sales
|
|
|
|
|
|
Novelis
|
59
|
32,749
|
34,685
|
-6
|
60
|
1,00,316
|
1,12,295
|
-11
|
18
|
41,702
|
36,723
|
14
|
|
Aluminium
Upstream
|
14
|
7,971
|
8,046
|
-1
|
14
|
23,913
|
24,960
|
-4
|
63
|
1,48,471
|
1,27,747
|
16
|
|
Aluminium
Downstream
|
5
|
2,547
|
2,647
|
-4
|
5
|
7,611
|
8,271
|
-8
|
14
|
33,010
|
30,844
|
7
|
|
Copper
|
22
|
11,954
|
10,309
|
16
|
21
|
35,897
|
30,496
|
18
|
5
|
11,009
|
11,009
|
0
|
|
Total
Reported Sales
|
100
|
55,221
|
55,687
|
-1
|
100
|
1,67,737
|
1,76,022
|
-5
|
100
|
2,34,192
|
2,06,323
|
14
|
|
Less:
Inter segment revenues
|
|
2,413
|
2,536
|
-5
|
|
7,769
|
8,677
|
-10
|
7151
|
-9,460
|
LP
|
|
|
Net
Sales
|
|
52,808
|
53,151
|
-1
|
|
1,59,968
|
1,67,345
|
-4
|
|
2,27,041
|
2,15,783
|
5
|
|
PBIT
|
|
|
|
|
|
Novelis
|
54
|
3,783
|
2,848
|
33
|
56
|
11,237
|
11,229
|
0
|
9
|
2,253
|
1,390
|
62
|
|
Aluminium
Upstream
|
35
|
2,443
|
1,591
|
54
|
32
|
6,452
|
6,210
|
4
|
56
|
14,543
|
15,229
|
-5
|
|
Aluminium
Downstream
|
1
|
103
|
157
|
-34
|
2
|
421
|
515
|
-18
|
33
|
8,402
|
12,496
|
-33
|
|
Copper
|
9
|
656
|
546
|
20
|
9
|
1,840
|
1,655
|
11
|
2
|
627
|
382
|
64
|
|
Total
PBIT
|
100
|
6,985
|
5,142
|
36
|
100
|
19,950
|
19,609
|
2
|
100
|
25,825
|
29,497
|
-12
|
|
Less
: Interest
|
|
944
|
934
|
1
|
|
2,970
|
2,660
|
12
|
|
3,646
|
3,768
|
-3
|
|
Add:
Other un-allcoable
|
|
-2,713
|
-2,994
|
-9
|
|
-7,104
|
-6,547
|
9
|
|
-8,938
|
-6,155
|
-45
|
|
PBT
|
|
3,328
|
1,214
|
4
|
|
9,876
|
10,402
|
4
|
|
13,241
|
19,574
|
-32
|
|