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Informist, Tuesday, Aug 13, 2024

 

 

--Hindalco: Apr-Jun consol net profit 30.74 bln rupees
--Hindalco: Apr-Jun consol revenue 570.13 bln rupees
--Hindalco: Apr-Jun consol net profit 30.74 bln rupees vs 24.54 bln
--Hindalco: Apr-Jun consol revenue 570.13 bln rupees vs 529.91 bln
--Hindalco: Apr-Jun consol EBITDA 79.92 bln rupees, up 31% YoY
--Hindalco: Apr-Jun aluminium upstream EBITDA 34.93 bln rupees
--Hindalco: Apr-Jun aluminium upstream EBITDA up 81% YoY
--Hindalco: Apr-Jun copper EBITDA 8.05 bln rupees, up 52% on year
--Hindalco: Apr-Jun Novelis adjusted EBITDA/tn $525, up 10% on year
--Hindalco: Apr-Jun Novelis EBITDA 41.7 bln rupees vs 34.56 bln yr ago
--Hindalco: Apr-Jun India ops revenue 227.50 bln rupees, up 12% YoY
--Hindalco: Apr-Jun India EBITDA 38.4 bln rupees, up 55% on year
--Hindalco: Apr-Jun aluminium upstream volume 329,000 tn, down 4% YoY
--Hindalco: Apr-Jun aluminium upstream EBITDA/tn $1,273, up 84% YoY
--Hindalco: Consol gross debt 540.2 bln rupees Jun 30 vs 545 bln Mar 31
--Hindalco: Consol net debt 355.3 bln rupees Jun 30 vs 315.4 bln Mar 31

--Hindalco: Aluminium downstream EBITDA hit by unfavorable product mix
--Hindalco: Weak realisation hit aluminium downstream EBITDA Apr-Jun
--Hindalco: Apr-Jun aluminium downstream EBITDA 1.1 bln rupees, dn 19%
--Hindalco: Apr-Jun aluminium downstream EBITDA/tn $138, down 32% YoY
--Hindalco: See aluminium downstream EBITDA/tn bounce back in Jul-Sep

 

By Rajesh Gajra

 

MUMBAI – Hindalco Industries Ltd reported a mixed performance in its earnings for the quarter ended June. Sharp on-year increases in operating profits from India aluminium upstream and copper segment propped up the consolidated bottomline of the Aditya Birla Group's flagship metals company.

 

The bottomline was, however, reined in by lower net profit from Hindalco's overseas wholly-owned subsidiary, Novelis, due to one-off costs and lower realisations. The company's aluminium downstream segment's operating profit fell in Apr-Jun, and was a drag on the consolidated bottomline growth.

 

Overall, at the consolidated level, Hindalco reported a strong rise in operating profit, despite a sluggish topline. Lower input costs, particularly coal costs and inventory gains, saved the day for Hindalco in the June quarter's earnings.

 

On an annual basis, the company reported a 25.3% rise in consolidated net profit to 30.74 bln rupees in Apr-Jun, a 31% jump in operating profit, as denoted by earnings before interest, tax, depreciation, and amortisation, to 79.92 bln rupees, and a 7.6% increase in revenue from operations to 570.13 bln rupees.

 

Sequentially, Hindalco's consolidated net profit declined 3.2%, EBITDA increased by 11%, and topline was up only 2%.

 

TOPLINE BLUES

The single-digit on-year revenue growth was primarily due to Novelis operations in the US which had around 56% share in consolidated revenue. Novelis reported a 2.4% on-year increase in net sales to $4.19 bln in Apr-Jun on the back of an 8% volume growth to 951,000 tn. Lower realisation, however, partly offset Novelis volume growth. Novelis' volume growth was on the back of demand for beverage packaging sheet picking up.

 

Hindalco's India aluminium upstream revenue also grew on-year in single digit, recording a 9.6% increase at 88.39 bln rupees. The sales volume in aluminium upstream recorded a decline of 3.5% on year to 329,000 tn. Higher average aluminium prices in the June quarter enabled the company to increase the revenue.

 

Saving Hindalco from further topline blues were the remaining two segments. In the aluminium downstream segment, Hindalco's revenue rose nearly 18% on year to 28.68 bln rupees, driven predominantly by an 18.5% rise in volume to 96,000 tn. A strong on-year growth of 16% in copper revenue to 132.92 bln rupees was driven by higher copper prices but reined in by a sluggish 2% volume growth in copper cathode rods to 100,000 tn. 

 

Taken together, the revenue of India business of Hindalco which comprises of aluminium upstream, aluminium downstream, and copper segments increased 12% on year to 227.50 bln rupees.

 

Compared with the previous quarter, Novelis' revenue inched up 2% amid flat volume, aluminium upstream revenue went up 4.4?spite a 2.4% volume decline, aluminium downstream segment's revenue declined 1.8% as volume fell 8.6%, and copper revenue was down 1?spite volume moving up 2%. The EBITDA per tn in aluminium upstream jumped up 84% on year to $1,273.

 

OPERATING PROFIT

At the consolidated level, Hindalco's EBITDA rose 31% on year to 79.92 bln rupees, largely due to copper and aluminium upstream segments. Copper EBITDA jumped up 52% on year to 8.05 bln rupees while aluminium upstream segment EBITDA rose substantially by 81% to 34.93 bln rupees.

 

Novelis' EBITDA was up 21% on year to 41.70 bln rupees while the EBITDA per tn increased by 10% to $525.

 

There was a weak EBITDA performance in Apr-Jun in the aluminium downstream business of the company despite 18% revenue growth. The segment EBITDA fell 19% on year to 1.1 bln rupees while the EBITDA per tn fell 32% to $138. Hindalco's management told investors in a post-earning call today that aluminium downstream segment EBITDA was hit by weak realisations and unfavourable product mix. The management, however, sees the EBITDA per tn in the segment bouncing back in the September quarter.

 

The aggregate EBITDA of the  aluminium upstream, aluminium downstream, and copper segments, which made up for the India business of the company, rose 55% on year to 38.4 bln rupees.

 

Sequentially, the company's consolidated EBITDA was up 11%. Among the segments, copper EBITDA was up only 4%, while Novelis' EBITDA declined 2%. Aluminium upstream EBITDA jumped up 29% but the aluminium downstream segment EBITDA declined sharply by 24%.

 

Hindalco's consolidated net debt increased to 355.3 bln rupees as of Jun 30 from 315.4 bln rupees as of Mar 31. The gross debt, however, declined to 540.2 bln rupees from 545 bln rupees in the same period.
 

Today, shares of Hindalco ended 1.3% lower at 621.40 rupees on the National Stock Exchange.  End

 

US$1 = $83.98 rupees

 

Edited by Akul Nishant Akhoury

 

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