Hindalco Q1 results: Multifold jump in net profit at Rs 910 cr, sales soar 79%

Hindalco Industries reported a stellar Q1 performance, logging a net profit of Rs 910 crore for the April-June quarter (Q1 FY22) compared to a net loss of Rs 40 crore in the year-ago quarter, it said in a regulatory filing on Friday. 

The Aditya Birla Group company reported a 79.2% jump in revenue from operations to Rs 13,298 crore for the said quarter. 

The Aluminium giant's year-on-year (YoY) performance was supported by a low base in the year-ago quarter, affected by the nationwide lockdown to stem the spread of coronavirus. 

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Hindalco's strong topline growth demonstrated the high export demand climate even as situation in India was affected by the second wave of the COVID-19 pandemic.

At a consolidated level, the company reported an all-time high consolidated net-profit of Rs 2,787 crore for the quarter amid the strong consolidated topline growth driven by Novelis Corp. It is a noteworthy increase of nearly 500% YoY.

 Hindalco added that its India business reported an all-time high operating profit of Rs 2,513 crore, a 121% YoY jump as the company gained from higher prices.

Hindalco's aluminium business reported a record-high operating profit of Rs 2,523 crore, up 142% YoY. The India business had hit a 13-year high operating margin of 37.5% in the reported quarter.

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"This quarter we delivered record-breaking financial results despite the impact of the Covid second wave. Our robust financial performance, accelerated pace of deleveraging and the increasing strength of our balance sheet has been recognised by the market and is reflected in credit rating upgrades for both Novelis and Hindalco," said Satish Pai, Managing Director, Hindalco Industries Ltd.

He added that the company is witnessing a visible improvement across all its business segments on the back of strong demand, plants running at capacity and better margins.