Hindalco Reports Consolidated Third Quarter FY2024 Results

Hindalco Industries Limited, the Aditya Birla Group metals flagship, reported a consolidated Net Profit of ₹2,331 crore, up 71% YoY in Q3 FY24, driven by a robust performance across aluminium and copper business segments. The Copper Business achieved a record quarterly EBITDA of ₹656 crore, a 20% rise YoY on the back of higher volumes and robust operations. Novelis reported an improvement of 33% YoY in Adjusted EBITDA and EBITDA per ton in Q3 FY24, driven primarily by favourable metal benefit from recycling and lower operating costs. In the Indian Aluminium segment, Upstream Business EBITDA for the quarter was ₹2,443 crore, up 54% YoY on account of lower input costs and continued strong operating performance. The Company maintained a strong balance sheet and liquidity with a consolidated Net Debt to EBITDA ratio well below 2x, positioning it well for organic growth.

Consolidated Results in Q3 FY24 (vs Q3 FY23)

Consolidated revenue for the third quarter stood at ₹52,808 crore (vs ₹53,151 crore in Q3 FY23), down 1% YoY. Hindalco reported an EBITDA of ₹6,322 crore in Q3 FY24 (vs ₹3,930 crore in Q3 FY23), up 61% YoY. Consolidated PAT in Q3 FY24 was ₹2,331 crore compared to ₹1,362 crore in Q3 FY23, up 71% YoY. Consolidated Net Debt to EBITDA stood at 1.43x as of 31 December, 2023 vs 1.6x as of 31 December, 2022.

Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries, said, "We continue to stay on our growth track despite challenging market conditions, delivering a strong performance, driven by an enhanced product mix and lower input costs across our businesses.

The Copper Business registered a record EBITDA, up 20% YoY on the back of strong volume growth and robust operations. The Aluminium Upstream Business EBITDA rose 54% YoY, supported by stable operations and lower raw material costs, which keeps us positioned in the first quartile of the global cost curve. We continue to invest in promising growth areas both in aluminium and copper downstream. Our overseas business and global recycling leader Novelis showed 33% YoY improvement in EBITDA and EBITDA per ton, driven by favourable metal benefit from recycling, higher pricing, and lower operating costs.

Robust cash generation in India operations enables further deleveraging of our India business; Hindalco has pre-paid long-term loans of ₹4,370 crores during the year amid a high-interest rate scenario. On the ESG front, our first-of-its-kind energy transition initiative is on course to begin rampup of 100 MW of round-the-clock carbon-free power for our Odisha smelter, by Q4 of CY2024."

Shares of Hindalco Industries Limited was last trading in BSE at Rs. 509.95 as compared to the previous close of Rs. 582.35. The total number of shares traded during the day was 1129814 in over 21087 trades.

The stock hit an intraday high of Rs. 541.85 and intraday low of 496.80. The net turnover during the day was Rs. 574393104.00.

Source : Equity Bulls

Keywords

HindalcoIndustries INE038A01020 Q3FY24 9MFY24 ResultUpdate