Hindalco Q1 Results: Net Profit Falls By 40% To Rs 2,454 Crore, EBITDA Down By 29%

The aluminium and copper major reported a 8.3 per cent drop in consolidated revenue, with a revenue of Rs 53,382 crore for the reported quarter, against Rs 58,229 crore for the same period last year.

Hindalco Industries Limited posted a fall in its net profit of 40.4 per cent on a year-on-year (YoY) basis in its first quarter (Q1) earnings on Tuesday. The Aditya Birla Group flagship logged a net profit of Rs 2,454 crore for the June quarter in the current financial year (FY24) as compared to a net profit of Rs 4,119 crore in the first quarter of the previous fiscal year (FY23).

The aluminium and copper major reported a 8.3 per cent drop in consolidated revenue, with a revenue of Rs 53,382 crore for the reported quarter, against Rs 58,229 crore for the same period last year, in its exchange filing. Revenue from operations decreased by 8.6 per cent on a YoY basis. The revenue reported for Q1FY24 stood at Rs 52,991 crore compared to Rs 58,018 crore reported for Q1FY23. 

The company reported a fall of 29.2 per cent in the Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) on a YoY basis. EBITDA for the reported quarter was Rs 6,109 crore against Rs 8,640 crore from a year earlier. EBITDA is a measure to understand the company’s overall financial performance. 

Elaborating on the company’s performance, managing director Satish Pai said, “FY24 has started on a promising note. Our focus on expanding our value-added portfolio and operational efficiencies has enabled us to deliver a sustained performance in the face of continued macroeconomic pressures. An enhanced product mix saw the Aluminium India Downstream Business generating higher value, with Q1 EBITDA increasing by 31% QoQ. Despite significant market headwinds, Novelis continued to show sequential improvement in adjusted EBITDA and EBITDA per ton, backed by record sales of automotive aluminium sheets. The Copper Business achieved record metal sales and maintained its market share despite undergoing a planned shutdown.”

Talking about the steps going ahead, Pai noted that the company will focus “on ESG, controlling costs, securitising resources, and driving downstream expansion.” A major player in the copper and aluminium industry, Hindalco’s global footprint includes 52 manufacturing units spread across 10 countries currently.