Hindalco Industries Limited, the Aditya Birla Group metals flagship, reported fiscal third quarter profit for the financial year 2023-24 at Rs 2,331 crore, up 71.1 per cent in comparison to Rs 1,363 crore during the corresponding quarter of previous year, surpassing estimates. The profit growth was driven by a robust performance across aluminium and copper business segments. It posted revenue from operations at Rs 52,808 crore, registering a marginal fall from Q3FY23 revenue of Rs 53,151 crore. The company EBITDA stood at Rs 6,322 crore, up 61 per cent on-year. According to a CNBC TV18 poll, Hindalco was expected to record Q3FY24 profit at Rs 776 crore and revenue for the quarter in review was estimated at Rs 19,128 crore.
Satish Pai, Managing Director, Hindalco Industries, said, “We continue to stay on our growth track despite challenging market conditions, delivering a strong performance, driven by an enhanced product mix and lower input costs across our businesses. The Copper Business registered a record EBITDA, up 20 per cent YoY on the back of strong volume growth and robust operations. The Aluminium Upstream Business EBITDA rose 54 per cent YoY, supported by stable operations and lower raw material costs, which keeps us positioned in the first quartile of the global cost curve. We continue to invest in promising growth areas both in aluminium and copper downstream.”
“Our overseas business and global recycling leader Novelis showed 33 per cent YoY improvement in EBITDA and EBITDA per ton, driven by favourable metal benefit from recycling, higher pricing, and lower operating costs. Robust cash generation in India operations enables further deleveraging of our India business; Hindalco has pre-paid long-term loans of Rs 4,370 crore during the year amid a high-interest rate scenario,” he added.
Hindalco’s Q3 performance across business segments
Novelis: Total shipments of flat rolled products were at 910 Kt in Q3FY24 vs 908 Kt in Q3FY23, flat YoY. Novelis’ revenue stood at $3.9 billion (vs $4.2 billion), down 6 per cent YoY, impacted by lower average aluminum prices. It reported an adjusted EBITDA of $454 million, up 33 per cent YoY driven by favourable metal benefit from recycling, higher pricing, and lower operating costs.
Aluminium (India): Upstream revenue was Rs 7,971 crore in Q3FY24 vs Rs 8,046 crore in Q3FY23. Aluminium Upstream EBITDA stood at Rs 2,443 crore in Q3FY24, up 54 per cent YoY driven by lower input costs. Further, Downstream third quarter revenue was Rs 2,547 crore vs Rs 2,647 crore in Q3FY23. Sales of Downstream Aluminium stood at 90 Kt vs 91 Kt in Q3FY23, flat YoY. Downstream EBITDA was Rs 103 crore in Q3FY24, down 34 per cent YoY, majorly impacted by unfavourable product mix and lower realizations.
Copper: Revenue from the Copper Business stood at Rs 11,954 crore, up 16 per cent YoY, driven by higher sales volumes and prices. EBITDA for the Copper Business was at an all-time high of Rs 656 crore in Q3FY24, up 20 per cent YoY backed by higher shipments and robust operations. Copper metal sales were 119 Kt (vs 109 Kt). Copper Continuous Cast Rod (CCR) sales were at 93 Kt (vs 88 Kt), up 6 per cent YoY supported by growing market demand for value-added products and increased utilization of our rod mills.