Hindalco net up eight times to ₹3,417 crore in Q2 – The Hindu BusinessLine

Clipped from: https://www.thehindubusinessline.com/companies/hindalco-net-up-eight-times-to-3417-crore-in-q2/article37457041.ece

Lower base, sharp increase in realisation boost numbers

Hindalco Industries, an Aditya Birla Group company, has reported that its net profit jumped over eight times in the September quarter to ₹3,417 crore against ₹387 crore in the same period last year, largely on lower base and sharp increase in realisation.

On a sequential basis, the net profit was up 23 per cent from ₹2,787 crore recorded in June quarter while revenue increased 15 per cent from ₹41,358 crore registered in June quarter.

Revenue from aluminium business was up 63 per cent at ₹7,812 crore, against ₹4,796 crore in same period last year while EBITDA hit an all-time high of ₹3,247 crore (₹1,188 crore) on favourable macros and higher volumes. EBITDA margins touched over a decade high of 42 per cent. Aluminium sales were up 12 per cent at 3.38 lakh tonne (3.03 lt).

Cathode production increased 38 per cent to 1 lt (73 lt) while copper cathode rod output remained at 65,000 tonnes. EBITDA of copper business was up 45 per cent at ₹352 crore (₹242 crore) on improved by-product realisation.

Enhancing capacity

The US subsidiary of Hindalco, Novelis will invest $130 million to enhance capacity by 1.24 lt and improve finish capability for auto sheets at Oswego, US. It recorded 16 per cent increase in EBITDA per tonne of $571 ($493) on higher shipments and firm global aluminium prices.

Gross debt of the company was down at ₹66,831 crore (₹78,266 crore) and it repaid ₹1,005 crore in the September quarter.

Satish Pai, Managing Director, Hindalco Industries, said the product-rich portfolio strategy continues to deliver results across diverse market scenarios and encourages the company to keep building the downstream asset base.

The recent Ryker copper rod unit acquisition is in keeping with downstream capex plans announced earlier this year, he added.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s