Hindalco posts record quarterly profit at Rs 4,119 cr in Q1; shares rise

Hindalco Industries Limited, the Aditya Birla Group metals flagship, on Wednesday reported its highest consolidated net profit at Rs 4,119 crore, rising 48 per cent YoY, for the quarter ended 30 June, 2022. The company had posted a profit of Rs 2,787 crore in the year-ago period.

Post declaration of results, Hindalco's shares rose 4.73 per cent to Rs 441.40 against the previous close of Rs 421.45 on BSE. The stock is trading higher than the 5-day, 20-day and 50-day moving averages but lower than 100-day and 200-day moving averages.

Sequentially, Hindalco broke its record performance in March quarter, despite rising costs and inflationary pressures.

The results were driven by an excellent performance by Novelis, and a robust performance by aluminium downstream and copper businesses, supported by operational efficiencies and higher volumes, the company said in a regulatory filing.

Further, revenue from operations increased 40 per cent to Rs 58,018 crore in the said quarter as against Rs 41,358 crore a year ago.

Its consolidated net debt to EBITDA remained strong at 1.40x on June 30, 2022 compared to 2.36x on June 30, 2021.

Hindalco also stated that Novelis reported its best-ever quarterly EBITDA and EBITDA per ton, primarily due to higher product pricing, favourable product mix and recycling benefits.

Novelis, a subsidiary of Hindalco, reported its best ever quarterly adjusted EBITDA of $561 million (vs $555 million), up 1 per cent YoY, primarily due to higher product pricing, favourable product mix and higher recycling benefits, the company added. Total shipments of flat rolled products (FRPs) were at 962 Kt vs 973 Kt in Q1 FY22, marginally lower due to supply chain constraints.

Commenting on the results, Satish Pai, Managing Director, Hindalco Industries, said: “After the record profitability of the fourth quarter, I am pleased to share that we delivered an even stronger first quarter despite rising input costs and inflationary pressures. Our performance was backed by strong operational efficiencies and pre-emptive sourcing of critical raw material, thus ensuring stable operations and higher margins. Our business model supports our position as an integrated aluminium producer with one of the world’s best EBITDA margins."

"Our product mix enhancement strategy is working well with the Aluminium Downstream EBITDA growing four-fold YoY. Novelis reported its highest ever EBITDA per ton driven by higher product pricing, favourable product mix and higher recycling benefits. Looking ahead, we remain focused on riding all market cycles with our greener, stronger, smarter approach.”