Hindalco Industries Q3: Net Profit Soars 71 Per Cent To Rs 2,331 Crore

The aluminium upstream segment of the firm recorded a 54 per cent jump in EBITDA at Rs 2,443 crore in the quarter under review, from Rs 1,591 crore seen in the corresponding quarter a year earlier

Hindalco Industries posted a massive jump of 71 per cent in its net profit on a year-on-year (YoY) basis in its third quarter (Q3) earnings on Tuesday. The Aditya Birla Group flagship logged a net profit of Rs 2,331 crore for the December quarter in the current financial year (FY24) against a net profit of Rs 1,362 crore in the third quarter of the previous fiscal year (FY23).

The firm recorded a marginal fall of 0.6 per cent in its revenue for Q3FY24 on a year-on-year basis. It posted a revenue of Rs 52,808 crore for the current quarter, down from its Q3 revenue of Rs 53,151 crore for FY23.

Elaborating on the performance, Satish Pai, MD, 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.”

Segment wise, the aluminium upstream segment of the firm recorded a 54 per cent jump in EBITDA at Rs 2,443 crore in the quarter under review, from Rs 1,591 crore seen in the corresponding quarter a year earlier. This growth was “supported by stable operations and lower raw material costs, which keeps us positioned in the first quartile of the global cost curve,” Pai added. EBITDA represents Earnings Before Interest, Taxes, Depreciation, and Amortization, and is often used by companies as an alternative to net income to better understand their finances.

The copper business of the firm logged a record EBITDA of Rs 656 crore, up by 20 per cent on a YoY basis, helped by robust volume growth and operations. The revenue of the segment stood at Rs 11,954 crore, climbing 16 per cent on a YoY basis. 

“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,” Pai noted.