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Informist, Friday, Nov. 7, 2025

 

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--Hindalco: Geopolitical uncertainties also impacting global aluminium prices
--CONTEXT: Comments by Hindalco's management in post-earnings investor call
--Hindalco: Copper demand strong from domestic electricals, white goods sector
--Hindalco: Volume, pdt mix aided rise in India aluminium downstream EBITDA
--Hindalco: Overall price outlook for Novelis in North America on the upside
--Hindalco: Co's balance sheet to aid in raising debt to infuse into Novelis
--Hindalco: See alumina sales down QoQ in Q3 due to planned plant shutdowns

By Rajesh Gajra and Shubham Rana

 

NEW DELHI – Hindalco Industries Ltd. will leverage the strength of its balance sheet to raise debt of $750 million through it overseas investment subsidiary AV Minerals (Netherlands) N.V., which will be used for fresh equity infusion in its major US subsidiary Novelis Inc., the company's management said Friday in a post-earnings conference call with analysts and investors. The management said "the strength of the Hindalco balance sheet means that we can raise money on the Hindalco side at a much more attractive cost."

 

US-based Novelis has escalated it total capital expenditure estimate for its Bay Minette greenfield rolling and recycling factory project to $5.0 billion from earlier $4.1 billion, on account of cost inflation, impact of tariffs, and higher costs due to competition for sub-contractors and labour. Hindalco, being the parent company for Novelis, will be supporting Novelis by way of equity infusion of around $750 million.

 

On an analyst's question on whether Novelis can seek higher margins for uncontracted volume in order to mitigate the rise in capital expenditure and tariff impact, the management said, "there will be opportunities to see price increases" on uncontracted volumes and also on contracts that come up for renewal. The management said its "overall price outlook in North America is to the upside."

 

In its opening remarks in the conference call, the management noted that geopolitical uncertainties and investor sentiment were also weighing on global aluminium prices "beyond just supply-demand fundamentals." In the September quarter, aluminium prices continued to be fundamentally supported by infrastructure investments, electrification, and sustainability-linked demand, it said.

 

INDIA BUSINESS

In its India operations, Hindalco's alumina sales were 199,000 tonnes in the September quarter, the management said. In the December quarter, the alumina sales will be about 170,000 tonnes, lower sequentially, "because we have a little bit of (plant) shutdown planned in Utkal (alumina refinery)," it said.

 

The company's India aluminium upstream shipment volume increased 4% on year in the September quarter, leading to a 10% revenue growth, a 22% growth in earnings before interest, tax, depreciation, and amortisation, and a 13% rise in EBITDA per tonne. The India aluminium downstream segment of the company reported a 10% on-year increase in shipment volume in the September quarter, with revenue rising 20%, EBITDA jumping up 69%, and the EBITDA per tonne rising sharply by 49%.

 

The company's India aluminium downstream EBITDA in the September quarter was the highest ever for any quarter, the management said. It said this was "supported by strong volumes and better product mix."

 

In its copper segment operations, the management said the "benchmark TcRcs (copper concentrate treatment and refining charges)" have recorded a "sharp 73?cline" from the benchmark level of 2024. This, according to the management, underscored the significant supply-side pressures currently impacting the global copper concentrate market. "Spot TCRCs have dropped to record lows, driven by intense competition and aggressive bidding from traders across the board," it said.

 

Hindalco's copper segment EBITDA fell 24% on year in the September quarter, amid a revenue growth of 11% and shipment volume decline of 3%. The domestic copper demand is strong on the back of electricals and white goods sectors, according to the management.

 

The company reported its September quarter earnings Friday. Hindalco's consolidated net profit increased 21% on year to INR 47.4 billion, while its revenue from operations increased 14% on year to INR 660.6 billion. On the National Stock Exchange, shares of the company settled at INR 790.40, up 0.3% from the previous close.  End

 

US$1 = INR 88.66

 

Edited by Ashish Shirke

 

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