Hindalco Q4 Results: Aluminium Major's Net Profit Declines 37 Per Cent To Rs 2,411 Crore

Hindalco Industries in a regulatory filing said that the total income of the company was Rs 56,209 crore in the quarter under review against Rs 56,057 crore in the year-ago quarter

Aditya Birla Group company Hindalco Industries is the world’s largest aluminium company by revenue, and a major player in copper serving more than half of India’s copper requirement.

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Hindalco Industries on Wednesday clocked a net consolidated profit for the quarter that ended March at Rs 2,411 crore, down 37 per cent from Rs 3,860 crore in the same quarter a year ago. 

The company in a regulatory filing said that the total income of the company was Rs 56,209 crore in the quarter under review against Rs 56,057 crore in the year-ago quarter. Revenue from operations stood at Rs 55,857 crore, rising 0.16 per cent from Rs 55,764 crore in the corresponding quarter last year. The consolidated EBITDA of the company was at Rs 5,818 crore, down 23 per cent year on year.

Aditya Birla Group company Hindalco Industries is the world’s largest aluminium company by revenue, and a major player in copper serving more than half of India’s copper requirement.

The company's filing said that Hindalco's US-based subsidiary Novelis posted a net income was at $175 million, down 7 per cent year on year. The company's expenses stood at Rs 53,372 crore, higher than Rs 51,026 crore a year ago.

“Our Copper Business delivered exceptional results recording its highest-ever EBITDA, driven by robust market demand, stable operations and higher value-added product sales,” said Satish Pai, Managing Director, Hindalco Industries.

“Our India Aluminium Downstream Business, which experienced its highest-ever EBITDA growth in FY23, reflects our strategic focus on enhancing this segment. Despite macroeconomic headwinds, Novelis has shown quarter-on-quarter recovery supported by improved product pricing and favourable product mix,” he added. 

The company said, looking ahead, a Net-Debt-Free India business and a strong balance sheet will continue to power its ambitions for organic growth.

Novelis

In Q4 of FY23, Novelis' shipments of flat rolled products from its plants amounted to 936 kilotonnes (Kt), showing a 5 per cent year-on-year decrease from 987 Kt in Q4 of FY22. However, there was a 3 per cent quarter-on-quarter increase driven by strong aerospace and automotive shipments. The company's revenue for Q4 FY23 reached $4.4 billion, down 8 per cent year-on-year from $4.8 billion. This decline was influenced by lower average aluminium prices and subdued sales volume compared to the previous year.

Novelis reported an adjusted EBITDA of $403 million, reflecting a 6 per cent year-on-year decrease from $431 million. However, there was an 18 per cent increase quarter-on-quarter, supported by higher product pricing and improved volumes product mix.

The adjusted EBITDA per ton for Novelis stood at $431, down 1 per cent year-on-year, but up 15 per cent sequentially.

Aluminium - India Business

In Q4, the Upstream segment of the company generated a revenue of Rs 8,050 crore, compared to Rs 9,253 crore in the same period of the previous year. The Aluminium Upstream EBITDA stood at Rs 2,192 crore, showing a 41 per cent year-on-year decrease from Rs 3,742 crore. However, there was a 38 per cent increase quarter-on-quarter, supported by lower input costs. The Upstream EBITDA margins were at 27 per cent.

On the other hand, the Downstream segment recorded a revenue of Rs 2,738 crore, down from Rs 3,282 crore in the prior year period. Sales of Downstream Aluminium amounted to 90 Kt, showing a 4 per cent year-on-year decrease from 93 Kt and a 1 per cent sequential decrease. The Downstream EBITDA stood at Rs 112 crore, reflecting a 20 per cent year-on-year decrease and a 29 per cent quarter-on-quarter decrease.