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Informist, Thursday, Feb. 13, 2025

 

 

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--Hindalco Oct-Dec consol net profit INR 37.35 bln
--Analysts saw Hindalco Oct-Dec consol net profit INR 35.31 bln
--Hindalco Oct-Dec consol net profit INR 37.35 bln vs INR 23.31 bln year ago
--Hindalco Oct-Dec consol revenue INR 583.90 bln vs INR 528.08 bln year ago
--Hindalco Apr-Dec consol net profit INR 107.18 bln vs INR 69.81 bln year ago
--Hindalco Apr-Dec consol revenue INR 1.74 tln vs INR 1.60 tln year ago
--Hindalco Oct-Dec aluminium upstream sales INR 99.93 bln vs INR 79.71 bln
--Hindalco Oct-Dec aluminium downstream sales INR 31.95 bln vs INR 25.47 bln
--Hindalco: Praveen Kumar Maheshwari resigns as CFO effective Apr 1
--Hindalco: Appointed Bharat Goenka as CFO from Apr 1
--Hindalco Oct-Dec consol EBITDA INR 81.08 bln vs INR 63.22 bln year ago
--Hindalco Oct-Dec India business revenue INR 246.18 bln, up 19% on year
--Hindalco consol gross debt INR 636.96 bln Dec 31 vs INR 591.21 bln Sept 30
--Hindalco consol net debt INR 418.18 bln Dec 31 vs INR 360.33 bln Sept 30
--Hindalco Oct-Dec aluminium upstream volume 338,000 tn, up 1% on year
--Hindalco Oct-Dec aluminium upstream EBITDA/tn $1,480, up 68% on year
--Hindalco Oct-Dec copper segment volume 120,000 tn, up 1% on year
--Hindalco Oct-Dec copper business segment EBITDA INR 7.77 bln, up 18% on year
 

 

By Avishek Rakshit

 

KOLKATA – A strong operating performance by its Indian business, and price-led sales growth in the US operations saw Hindalco Industries Ltd. not only beat the Street on the profit projections but also report its best-ever earnings before interest, tax, depreciation, and amortisation from upstream aluminium sales in India for any quarter. 

 

The metals flagship of the Aditya Birla Group posted a 60% on-year jump in consolidated net profit for the December quarter to INR 37.4 billion, around 6% higher than the Street's projection of INR 35.3 billion. However, consolidated sales rose nearly 11% on year to INR 583.9 billion, lagging by around 2% of the Street's estimate of INR 593.6 billion.

 

Revenue from its subsidiary Novelis Inc., which accounts for around 62% of the annual revenue, and majorly comprises the company's global sales, rose by over 5% on year to INR 344.6 billion, but the earnings before interest, tax, depreciation, and amortisation, or EBITDA from this subsidiary fell by over 18% on year to nearly INR 31 billion.

 

Sixty per cent of the business for Novelis came in from can sales, followed by sales to the automotive industry at 19%. The sale of speciality products comprised 18% of the revenue for Novelis, and sales to the aerospace sector comprised the remaining 3% of the revenue.

 

In a statement, the company said that its shipments from the Novelis business fell by 1% to 904 kilo tonnes but higher average aluminium prices led to the revenue growth. However, the EBITDA was negatively impacted due to higher aluminum scrap prices and unfavourable product mix.

 

Nevertheless, its domestic business continued to deliver strong results on back of strong market conditions and better cost control.

 

Upstream aluminium sales in India, however, saw its best-ever quarterly EBITDA at INR 42.2 billion, up 73% on year, and EBITDA per tonne was up 68% on year at $1,480, with industry-best margin of 42%. The revenue from this division was also up by 25% on year at INR 99.9 billion.

 

Backed by higher sales volume, the downstream aluminium business registered a revenue growth of 25% on year to nearly INR 32 billion, and the EBITDA from this business increased by 36% on year to INR 1.5 billion. The EBITDA per tonne was up 22% on year at $179, and sales volume increased by 10% on year to 99 kilo tonne.

 

The copper business also performed well with a 15% on-year revenue growth at INR 137.3 billion, and copper metal sales increased by 1% to 120 kilo tonne, together with 1% on-year increase of copper continuous cast rod sales at 95 kilo tonne. The EBITDA from this business segment, at INR 7.8 billion, was up 18% on year.

"Hindalco delivered robust consolidated results in the third quarter despite global uncertainties, driven by an excellent performance of its India business," Satish Pai, the company's managing director, said in a statement.

 

Indian operations, which usually account for the residual 40% of its sales, were up 19% on year at INR 246.2 billion, and profit after tax from Indian operations was up 134% on year at INR 28.9 billion. The EBITDA, at INR 47.7 billion, was up 69% on year.

 

"During the quarter we secured critical resources for our India upstream business, enhancing our global cost leadership. Key growth initiatives, such as the alumina refinery, aluminium smelter expansion, copper smelter expansion and the FRP (flat rolled products) project, remain on track," Pai said.

 

Although Indian operations performed well, leading to the EBITDA growth substantially, the underperformance of Novelis on EBITDA, pulled down the potential high growth. At a consolidated level, the company's EBITDA increased by 28% on year to INR 81.1 billion.

 

As on Dec. 31, the company's gross debt was up by over 19% on year at nearly INR 637 billion, and the net debt was up by 20% on year at INR 418.2 billion. The company's treasury balance was up nearly 18% on year at INR 218.8 billion.

 

During Apr-Dec, consolidated sales rose by 8.5% on year to INR 1.7 trillion, and the consolidated profit rose by 53.5% on year to INR 107.2 billion.

 

In a notice to the bourses, Hindalco said that its targeted acquisition of the fabrication facility of Home Build Tech Pvt. Ltd. did not materialise as negotiations failed, and the company is not pursuing the acquisition.

 

In the same notice, the company said that its chief finance officer, Praveen Kumar Maheshwari, will be resigning effective Apr. 1, and will be appointed as a whole-time director of the company till Mar. 31, subject to the shareholders' approval. Bharat Goenka, who is the chief finance officer designate, will take over charge from Maheshwari Apr. 1 onwards.

 

On Thursday, shares of Hindalco closed 0.6% higher at INR 602.50 on the National Stock Exchange. The company declared its results after trading hours. End

 

US$1 = INR 86.89

 

Edited by Ashish Shirke

 

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