Hindalco Industries Limited reported 45% decline annually in a net profit for the fiscal third quarter at Rs 2,049 crore as compared to Rs 3,735 crore at the end of Q3FY25, lagging Bloomberg estimates of Rs 4,141 crore.
The aluminium and copper major’s revenue from operations jumped to Rs 66,521 crore in the December quarter, up 13.9% annually from Rs 58,390 crore in the same quarter last year. The company’s revenue from operations was also marginally behind street estimates of Rs 64,581 crore.
Earnings before interest, taxation, depreciation, and amortisation (EBITDA) for the quarter was Rs 8,543 crore, ahead of Bloomberg estimates of Rs 8,150 crore, and up 5% from Q3FY25’s Rs 8,308 crore benefitting from lower power and fuel cost, and inventory costs in the quarter.
“Hindalco sustained its growth momentum amid global volatility, led by all-time high performance by its India business. This strength helped offset the impact of tariffs and the Oswego disruption, supported by disciplined cost management and operational efficiencies across segments,” Satish Pai, Managing Director, Hindalco Industries, said.
Oswego Disruption
He added that the fire at the Oswego facility had limited EBITDA impact but did affect cash flow and PAT. The mill is expected to restart sometime in June. Hindalco is well covered by insurance and the concerns of most of the customers who were impacted have been addressed, he added.
Domestic Resilience
India business PAT was Rs 3,581 crore showing a jump of 24% annually, the company said in its earnings presentation. Revenues at Rs 29,858 crore were up 21% annually, while EBITDA at Rs 5,660 crore was up 10%.
The company’s US subsidiary, Novelis, reported revenue of $4.2 billion, up from $4.08 billion in the same quarter last year, driven by higher metal prices. Business segment EBITDA for the subsidiary was $348 million, down 5% due to the impact of lower volumes, tariffs and disruption due to Oswego fires.
“Beyond the Oswego fire, the underlying Novelis business is performing well, and we are beginning to see strong tailwinds. Scrap spreads are turning favourable, and our cost-cutting efforts are progressing strongly. We are now exiting at a $150 million run rate compared to the $75 million we had guided in the first quarter,” Pai said.
Ebitda per tonne at Novelis continued to be under $500 for a consecutive fourth quarter at $430, impacted by tariffs and Oswego incident. Excluding the impact of the two, EBITDA/tonne grew 22% annually to $495.
Shipments for the fiscal third quarter were dipped annually at 809 kilotonne (KT) as compared to 904 KT a year ago.
“On the Bay Minette project, it continues to remain on track and on time. We are planning commissioning on October 31, and it is progressing as per the budget previously shared,” the company said.
Hindalco’s aluminium upstream segment reported revenue of Rs 10,620 crore, up 6% annually from Rs 9,993 crore in the same period last year. Meanwhile, aluminium downstream revenue was Rs 3,909 crore up 22% from Rs 3,195 crore in the third quarter of FY25. The copper segment posted revenue of Rs 18,233 crore versus Rs 13,732 crore in the same quarter previous year.
Aluminium upstream EBITDA was Rs 4,832 crore, up 14% annually, while downstream aluminium EBITDA at Rs 233 crore was up 55% year on year. Copper business EBITDA was down 23% at Rs 595 crore.
Upstream aluminium shipments were up 2% on an annual basis at 345 KT against 338 KT in Q3FY25. Downstream aluminium shipments at 108 KT were up 9% year on year while copper shipments at 122 KT were up 1%.