Hindalco Industries Ltd announced its fiscal second quarter earnings with a profit of Rs 3,909 crore, registering a growth of 78.0 per cent in comparison to Rs 2,196 crore during the same period of previous financial year. Profit, it said, was driven by a strong operational performance by the India business, favourable macros and prudent cost management. It posted revenue from operations at Rs 58,203 crore, up 7.4 per cent as against Rs 54,169 crore during the second quarter of FY24.
Aluminium Upstream EBITDA per tonne was at $1,349, up 80 per cent, with industry-best margins of 41 per cent. Copper Business delivered another record-breaking performance in Q2, with EBITDA at an all-time high of Rs 829 crore, up 27 per cent. Novelis’ performance was impacted by the Sierre flood and tightening of scrap spreads. Excluding the Sierre flood impact, shipments grew by 4 per cent and EBITDA per tonne was at $502.
Hindalco said that the company generated healthy cash flow which helped it keep the Net Debt to EBITDA ratio below 1.2x.
Satish Pai, Managing Director, Hindalco Industries, said, “Our India business delivered a strong operational performance in Q2 bolstered by our relentless focus on operational reliability and cost management. Consequently, our Aluminium India Upstream business reported an EBITDA per tonne of $1,349— the highest in the last 10 quarters and the best-in-industry globally. The Copper business achieved another record quarterly EBITDA. Novelis’ global footprint allowed the company to achieve record beverage packaging shipments, partially offsetting the impact from the flooding-related outage at Sierre. During the quarter, we made significant progress across our growth projects in India Business and Novelis.”
Q2 performance across business verticals
Novelis reported revenue at $4.3 billion, up 5 per cent driven by higher average aluminum prices. Adjusted EBITDA stood at $462 million, down 5 per cent due to less favourable metal benefit, unfavourable product mix, and $25 million flood impact at Sierre. It posted shipments at 945 KT, up 1 per cent led by record beverage packaging shipments. Net Income, meanwhile, was recorded at $128 million, down 18 per cent affected by $61 million in charges from Sierre
production interruptions, along with restructuring and impairment costs
Aluminium (India) recorded quarterly upstream revenue at Rs 9,125 crore, up 16 per cent. Aluminium Upstream EBITDA stood at Rs 3,709 crore, up 79 per cent supported by lower input costs. Downstream revenue, meanwhile, was reported at Rs 3,161 crore, up 20 per cent and sales of downstream aluminium stood at 103 KT, up 10 per cent.
Copper (India) posted quarterly revenue at Rs 13,114 crore, up 5 per cent and EBITDA stood at an all-time high of Rs 829 crore. Copper metal sales were at 117 KT, down 13 per cent and Copper Continuous Cast Rod (CCR) sales were at 90 KT, down 10 per cent.