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Informist, Monday, Nov. 11, 2024

 

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-- Hindalco Jul-Sept consol net profit INR 39.09 bln
-- Analysts saw Hindalco Jul-Sept consol net profit INR 33.34 bln
-- Hindalco Jul-Sept consol net profit INR 39.09 bln vs INR 21.96 bln yr ago
-- Hindalco Jul-Sept consol revenue INR 582.03 bln vs INR 541.69 bln year ago
-- Hindalco: One-time cost of INR 5.14 bln in Jul-Sept
-- Hindalco Apr-Sept consol net profit INR 69.83 bln vs INR 46.50 bln yr ago
-- Hindalco Apr-Sept consol revenue INR 1.152 tln vs INR 1.072 tln year ago
-- Hindalco Jul-Sept aluminium upstream sales INR 91.25 bln vs INR 78.78 bln
-- Hindalco Jul-Sept aluminium downstream sales INR 31.6 bln vs INR 26.3 bln
-- Hindalco Jul-Sept copper sales INR 131.14 bln vs INR 124.41 bln year ago
-- Hindalco Jul-Sept consol EBITDA INR 91.00 bln rupees vs 60.96 bln year ago
-- Hindalco Jul-Sept consol EBITDA INR 91.00 bln vs INR 60.96 bln year ago

-- Hindalco Jul-Sept India business revenue INR 231.35 bln, up 10% on year

-- Hindalco Jul-Sept aluminium downstream EBITDA/tn $179, down 11% on year

-- Hindalco Jul-Sept copper volume 117,000 tn, down 13% on year

-- Hindalco Jul-Sept copper EBITDA INR 8.29 bln, up 27% on year

-- Hindalco consol net debt INR 360.33 bln Sept 30 vs INR 355.30 bln Jun 30

-- Hindalco consol gross debt INR 591.21 bln Sept 30 vs INR 540.19 bln Jun 30

-- Hindalco: Jul-Sept aluminium upstream EBITDA/tn $1,349, up 80% on year

-- Hindalco: Jul-Sept aluminium upstream EBITDA INR 37.09 bln, up 79% on year

-- Hindalco: Jul-Sept aluminium upstream volume 328,000 tn, down 2% on year

-- Hindalco Jul-Sept aluminium downstream volume 103,000 tn, up 10% on year

-- Hindalco Jul-Sept aluminium downstream EBITDA INR 1.54 bln, down 1% on yr

-- Hindalco Jul-Sept India ops EBITDA INR 51.39 bln vs INR 25.68 bln year ago

 

 

By Rajesh Gajra

 

MUMBAI – The September quarter earnings of Hindalco Industries Ltd. came above market expectations on revenue and bottom line. The flagship metals company of the Aditya Birla group reported a consolidated net profit of INR 39.09 billion, way above the Street estimate of INR 33.34 billion, and up 78.0% from a year ago. The bottom line grew on the back of the revenue increasing by 7.5% on year to INR 582.03 billion, which was higher than analysts' estimate of INR 562 billion.

 

The net profit growth in Jul-Sept was the highest in 10 quarters, while the revenue growth of 7.5% was lower than the 7.6% growth reported in the June quarter. Sequentially, Hindalco's consolidated net profit rose 27.2% and revenue grew 2.1%.

 

In Apr-Sept, the first half of the current financial year, Hindalco's consolidated net profit rose 50.2% on year to INR 69.83 billion and revenue increased 7.5% on year to INR 1.152 trillion.

 

Hindalco's revenue growth momentum in the September quarter also led to strong growth in Hindalco's consolidated operating profit. The company's earnings before interest, tax, depreciation, and amortisation rose 49% on year to INR 91.00 billion in the quarter ended September. The EBITDA margin, calculated by Informist as the percentage of EBITDA to revenue from operations, expanded to 15.63% from 11.25% a year ago.

 

The EBITDA margin growth was aided by input costs increases trailing revenue growth of 7.5%. The cost of materials consumed increased 4.3% on year to INR 363.33 billion and employee benefit expense increased 4.1% to INR 37.99 billion. Boosting the margin growth was a decline of 3.6% on year in other expenses to INR 70.02 billion and a fall of 1.0% in power and fuel costs to INR 35.85 billion.

 

The 7.5% growth in the top line was driven by a rise in sales of aluminium and copper manufacturing operations in India as well as overseas sales of aluminium products through its US-headquartered subsidiary, Novelis. India business revenue, which contributed around 40% of the consolidated revenue of the company, rose 10% on year to INR 231.35 billion. Novelis' net sales increased 5% on year to $4.3 billion, on the back of a 1% increase in shipments of flat rolled aluminium products at 945,000 tonnes.

 

The revenue growth in the India business segment of Hindalco was led by a 15.8% on year increase in aluminium upstream revenue to INR 91.25 billion despite the volume declining 2% to 328,000 tonnes, indicating better pricing power. The aluminium downstream revenue rose even higher by 20% on year to INR 31.60 billion and was strongly supported by a 10% rise in volume to 103,000 tonnes.

 

On the other hand, the copper segment reported tepid revenue growth. Copper sales increased 5.4% on year to INR 131.14 billion. Had copper prices not been higher on an average in the September quarter, copper revenue would have declined because the sales volume fell 13% on year to 117,000 tonnes.

 

SEGMENT MARGINS

 

Hindalco's operating profit growth was largely driven by a sharp jump of EBITDA in aluminium upstream by 79% on year to INR 37.09 billion. The copper EBITDA rose by 27% on year to INR 8.29 billion. Dragging the operating profit of Hindalco down was Novelis, whose EBITDA declined 3% on year to INR 38.72 billion. Aluminium downstream EBITDA also declined 1% on year to INR 1.54 billion.

 

In terms of volume-based operating profit growth, Novelis' performance was weak with its EBITDA per tonne falling 6% on year to $489. Aluminium downstream EBITDA per tonne fell 11% to $179. On the other hand, aluminium upstream EBITDA per tonne rose 80% on year to $1,349 and copper segment EBITDA per tonne rose 27% on year to $829.

 

Hindalco's consolidated debt rose in the quarter ended September. The consolidated gross debt increased to INR 591.21 billion as of Sep 30 from INR 540.19 billion as of Jun 30. It was INR 565.78 billion as of September end last year. The consolidated net debt was at INR 360.33 billion as of Sep 30.

 

Despite the rise in debt, the finance costs of Hindalco dropped nearly 16% on year to INR 8.69 billion. This aided the bottom line of the company. But negatively impacting the net profit was one-time expenses of INR 5.14 billion and a 4.8% increase in depreciation to INR 19.32 billion.

 

Shares of Hindalco ended Monday 0.8% up at INR 655.35 on the National Stock Exchange.  End

 

US$1 = INR 84.40

 

Edited by Saji George Titus

 

 

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