Hindalco Industries on Friday recorded second quarter profit for the financial year 2023-24 at Rs 2,196 crore, down 0.4 per cent in comparison to Rs 2,205 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 54,169 crore, down 3.6 per cent as against Rs 56,176 crore during the second quarter of FY23. The company posted consolidated EBITDA at Rs 6,096 crore, up 6 per cent YoY.
The Company maintained a strong balance sheet and liquidity with a Net Debt to EBITDA ratio well below 2x, positioning it well for organic growth. Hindalco also said that it will invest Rs 8,000 crore in a 2 million-tonne greenfield alumina refinery in Odisha.
Satish Pai, Managing Director, Hindalco Industries, said, “Hindalco continues to demonstrate Sustain-Ability, through a performance that is robust and consistent. We have maintained momentum driven by our focus on cost control and a solid performance by all our downstream segments. Copper Business delivered its best-ever quarterly results backed by record metal sales. Aluminium India Upstream EBITDA rose by 7% over the first quarter supported by higher volumes and lower input costs. Aluminium India Downstream Business EBITDA increased 16 per cent sequentially due to higher volumes. Novelis continued to show sequential improvement in EBITDA and EBITDA per ton, driven by higher volumes, particularly in can shipments which grew 12 per cent over the last quarter.”
Hindalco Q2 performance across segments
Hindalco’s Novelis recorded total shipments of flat rolled products were at 933 Kt in Q2FY24 vs 879 Kt in Q1FY24, up 6 per cent QoQ contributed largely by sequential increase in can shipments of 12 per cent. Novelis’ revenue stood at $4.1 billion (vs $4.1 billion), flat QoQ, supported by higher shipments. Novelis reported an adjusted EBITDA of $484 million (vs $421 million), up 15 per cent QoQ due to higher shipments and better scrap utilization.
The Aluminium (India) business posted upstream revenue at Rs 7,878 crore in Q2FY24 vs Rs 8,064 crore in the prior quarter. Aluminium Upstream EBITDA stood at Rs 2,074 crore in Q2FY24, compared to Rs 1,935 crore in Q1FY24, up 7 per cent QoQ driven by lower input costs. Downstream second quarter revenue was Rs 2,629 crore vs Rs 2,435 crore in the prior quarter. Sales of Downstream Aluminium stood at 94 Kt vs 81 Kt in Q1FY24, up 15 per cent QoQ. Downstream EBITDA was Rs 171 crore in Q2FY24.
The Copper business recorded revenue at Rs 12,441 crore, up 8 per cent QoQ, driven by higher sales volumes. EBITDA for the Copper Business was at an all-time high of Rs 653 crore in Q2FY24 compared to Rs 531 crore in Q1FY24, up 23 per cent QoQ, on account of higher shipments. Copper metal sales were at a record 134 Kt (vs 118 Kt). Copper Continuous Cast Rod (CCR) sales were also at an all-time high of 100 Kt (vs 98 Kt), up 2 per cent QoQ in line with growing market demand for value-added products and increased utilization of our rod mills.