Hindalco Industries Limited on Wednesday posted fiscal fourth quarter earnings with profit at Rs 2,411 crore, down 37.4 per cent as against Rs 3,851 crore in the same quarter last year. However, the profit grew 77 per cent sequentially driven by a continued focus on cost control and a resilient operational performance by India business, the company said. It posted revenue from operations at Rs 55,857 core in the fourth quarter of FY23 in comparison to Rs 55,764 crore in the corresponding quarter last year, on account of better realisations and volumes in India operations. The company’s EBITDA stood at Rs 5,818 crore, down 23 per cent on-year. This was impacted by higher input costs and unfavourable macros, partially offset by better operational performance of Copper business. The Board also recommended a dividend of Rs 3 per equity share of Re 1 each for the year ended March 2023.
Hindalco’s performance across business verticals
Hindalco’s Novelis posted revenue for the fourth quarter at Rs 36,176 crore. Total shipments of flat rolled products were at 936 Kt in Q4FY23 vs 987 Kt in Q4FY22, down 5 per cent on-year, and up 3 per cent QoQ supported by higher aerospace and record automotive shipments in Q4.
While its Aluminium Upstream business clocked a revenue at Rs 8,050 crore, Aluminium Downstream business posted revenue at Rs 2,738 crore for the quarter. Aluminium Upstream EBITDA stood at Rs 2,192 crore in Q4FY23, compared with Rs 3,742 crore for Q4FY22, down 41 per cent YoY, and up 38 per cent QoQ supported by lower input costs. Sales of Downstream Aluminium stood at 90 Kt vs 93 Kt in Q4FY22, down 4 per cent YoY, and down 1 per cent sequentially. Downstream EBITDA stood at Rs 112 crore in Q4 FY23, compared to Rs 140 crore for Q4 FY22.
Hindalco’s Copper business posted revenue of Rs 11,206 crore, up 14 per cent on-year on account of higher global prices of copper and higher volumes. “EBITDA for the Copper business was at an all-time high of Rs 598 crore in Q4FY23 compared to Rs 387 crore in Q4FY22, up 55 per cent YoY, and up 10 per cent QoQ backed by continued stable operations, higher domestic sales, and better TC/RCs.
“Our Copper Business delivered exceptional results recording its highest-ever EBITDA, driven by robust market demand, stable operations and higher value-added product sales. Our India Aluminium Downstream Business, which experienced its highest-ever EBITDA growth in FY23, reflects our strategic focus on enhancing this segment. Despite macroeconomic headwinds, Novelis has shown quarter-on-quarter recovery supported by improved product pricing and favourable product mix,” said Satish Pai, Managing Director, Hindalco Industries.
Going forward
Hindalco is committed to maintain a strong balance sheet and to ontinue to focus on shareholder value creation through prudent capital allocation. Satish Pai is looking at a net-debt-free business and strong balance sheet that will “power the ambitions for organic growth”. “We also continue to drive our holistic ESG approach with specific targets that go beyond carbon emissions, and encompass other planet-critical aspects like waste, biodiversity, water positivity, and community inclusion,” he concluded.
