Hindalco Industries Limited, the Aditya Birla Group metals company, on Thursday reported 96 per cent year-on-year surge in consolidated net profit at a record-high of Rs 3,675 crore on "favourable macros, strategic product mix and an improved performance by the downstream business." The company had posted a net profit of Rs 1,877 crore in the year-ago period.
Sequentially, the firm saw a rise of 7.5 per cent in its net profit from Rs 3,417 crore in Q3FY21.
"The results were driven by consistent performance by Novelis and an exceptional performance by India business... Novelis continued to report consistent quarterly EBITDA despite challenges in the automotive segment due to the global semiconductor chip shortage, unplanned production downtime in South America and supply chain bottlenecks in Asia," the company said in a statement.
The company's revenue from operations also increased 44 per cent to Rs 50,272 crore in the third quarter as against Rs 34,958 crore in the same quarter last fiscal.
Consolidated Net Debt to EBITDA was at a strong 1.62x on December 31, 2021 compared to 2.59x on March 31, 2021.
Further, Hindalco's Q3 aluminium EBITDA was all-time high at Rs 3,376 crore.
Segment-wise results:
Aluminium:
EBITDA was at an all-time high of Rs 3,376 crore in Q3 FY22, compared with Rs 1,461 crore for Q3 FY21, an increase of 131per cent YoY, primarily due to favourable macros, higher volumes, better operational efficiencies and improved performance of downstream business. EBITDA margins were at 41 per cent and continue to be the best in the industry. Revenue was ₹8,243 crore in Q3 FY22 vs Rs 5,294 crore in the prior year period.
Novelis
Novelis recorded quarterly adjusted EBITDA of $506 million (vs $501 million), up 1 per cent YoY, on the back of strong product pricing and mix as well as favourable metal benefits, which mitigated inflationary cost pressures and supply chain disruption-related costs. It reported an Adjusted EBITDA per ton of $544 in Q3 FY22, compared to $537 in the prior year, an increase of 1 per cent YoY.
Copper
The company stated that all copper smelters ran optimally delivering a consistent performance in Q3FY22. EBITDA for the business stood at Rs 390 crore in Q3 FY22 compared to Rs 240 crore in Q3 FY21, up 63 per cent YoY on the back of higher volumes, better operational efficiencies and improved by-product realisations. Revenue from the Copper Business was Rs 10,255 crore this quarter, up 67 per cent YoY, primarily due to higher global prices of copper and higher volumes.
Commenting on the results, Satish Pai, Managing Director, Hindalco Industries, said: “Our sustained performance and strong balance sheet are driving our plans for further organic capex. We have already announced over Rs 3,000 crore investments in our downstream pipeline – Hirakud and Silvassa, and the acquisitions of Ryker and Hydro’s Kuppam units. Novelis too has announced capital projects that align market growth with sustainability considerations. An example is the $365 million closed-loop recycling and casting centre for the North American market."
He also added the company foresees a surge in demand for aluminium and copper and are well-positioned to serve the market, adding that it has already planned an investment of Rs 825 crores under the government’s Production Linked Incentive (PLI) scheme reiterating our commitment to a self-reliant India.
From an ESG viewpoint, Pai added that sustainable Business Model is being recognised globally.
"DJSI awarded us the Most Sustainable Aluminium Company for the second year running and we also achieved a Gold in the S&P Global Sustainability Yearbook 2022.”
Shares of Hindalco on Thursday traded 0.67 per cent higher at Rs 546 apiece during late trade on BSE.