Hindalco shares Q4 results; profit drops 37% to Rs 2,411 crore; board declares Rs 3 dividend

Shares of Aditya Birla Group flagship Hindalco Industries settled marginally lower on Wednesday following the quarter results by the aluminium major. Hindalco posted a 37 per cent drop in consolidated net profit at Rs 2,411 crore for the quarter compared with Rs 3,851 crore in the same quarter last year. The profit degrowth came in line with the 35-43 per cent degrowth forecasts by a few brokerages.

Consolidated revenue for the quarter came in at Rs 55,857 crore compared with Rs 55,764 crore in the same quarter last year.

Profit was up 77 per cent sequentially, driven by a continued focus on cost control and a resilient operational performance by India business. Novelis delivered an improved quarter-on-quarter performance with net income of $175 million, up 82 per cent sequentially, the company said in a BSE filing.

The company board has announced Rs 3 per share dividend for FY23. The stock closed the day at Rs 407.05 on BSE, down 0.77 per cent. 

Hindalco said Novelis' YoY performance was impacted by mostly transitory factors like lower volumes on supply chain destocking, lower demand for specialties, inflation, higher energy costs, rising interest rates, and tight scrap spreads. Novelis reported net sales of $4.4 billion for the quarter, down 8 per cent YoY, hurt by lower average aluminium prices and subdued sales volume YoY. Adjusted Ebitda for Novelis at $403 million, Hindalco said, was down 6 per cent YoY, primarily due to lower shipments, inflationary environment, higher energy costs due to geopolitical instability, and less favourable metal benefits.

"These headwinds were partially offset by higher product pricing, including some cost passthroughs to customers, and favourable product mix. Adjusted Ebitda per tonne at $431 per tonne Q4-FY23 was against $437 per tonne in the corresponding quarter of last year," it said.

Hindalco said it has committed to organic growth projects of $3.3 billion in Novelis and that $1.13 billion worth projects are on track.

Hindalco said there was an improvement in product pricing and favourable product mix for Novelis and that factors impacting the YoY performance are transitory

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