Hindalco Industries on Tuesday posted profit at Rs 2454 crore, down 40.4 per cent as compared to Rs 4119 crore during the first quarter of FY23. This was driven by recovery in Novelis and Aluminium India Downstream Business, and backed by a steady performance by the Copper business. It posted revenue from operations at Rs 52,991 crore, down 8.7 per cent as against Rs 58,018 crore. The company EBITDA stood at Rs 6,109 crore.
Hindalco recorded total income for the quarter at Rs 53,382 crore, down 8.3 per cent from Rs 58,229 crore during the year ago period. However, the company’s total expenses during Q1FY24 stood at Rs 50,055, down 4.1 per cent as against Rs 52,185 crore during the first quarter of FY23. “Despite macroeconomic headwinds, Hindalco maintained a strong balance sheet and liquidity position which helped the company keep the net debt to EBITDA ratio below 2x,” it 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,” said Satish Pai, Managing Director, Hindalco Industries.
Hindalco’s performance across segments
For Novelis, total shipments of flat rolled products were at 879 Kt in Q1FY24 vs 936 Kt in Q4FY23, down 6 per cent QoQ due to lower beverage can shipments and unfavourable economic conditions impacting some specialties markets mainly in building and construction, partially offset by record automotive shipments. Novelis’ revenue stood at $4.1 billion. It reported an adjusted EBITDA of $421 million.
The revenue for Aluminium (India) Upstream stood at Rs 8,064 crore in Q1FY24 as against Rs 8,050 crore in the prior quarter. Aluminium Upstream EBITDA stood at Rs 1,935 crore in Q1FY24, down 12 per cent QoQ due to lower metal prices. Downstream first quarter revenue was Rs 2,435 crore. Sales of downstream aluminium stood at 81 Kt, down 9 per cent QoQ.
Revenue from the copper business stood at Rs 11,502 crore, up 3 per cent QoQ, driven by higher sales volumes. EBITDA for the copper business was Rs 531 crore in Q1FY24, down 11 per cent QoQ, impacted by planned maintenance shutdown. Copper metal sales were at a record 118 Kt (vs 117 Kt). Copper Continuous Cast Rod (CCR) sales were also at an all-time high of 98 Kt (vs 95 Kt).
“An enhanced product mix saw the Aluminium India Downstream Business generating higher value, with Q1 EBITDA increasing by 31 per cent 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. We will continue to strongly position our Company for the future, by maintaining our focus on ESG, controlling costs, securitising resources, and driving downstream expansion,” said Satish Pai.