Hindalco Q2 Results: Profit Rises 23%, Beats Estimates

Hindalco Industries Ltd.’s second-quarter profit rose beating estimates, aided by an all-round improvement in business.

Net profit of India’s largest aluminium producer rose 23% sequentially to Rs 3,417 crore in the quarter ended September, according to its exchange filing. That compares with the Rs 2,778.9-crore consensus estimate of analysts tracked by Bloomberg.

Operating income increased 18.5% to Rs 8,048 crore. Analysts were expecting Rs 6,157.3 crore.

Revenue rose 15.2% to Rs 47,665 crore. Analysts had pegged it at Rs 44,424.8 crore.

Other Highlights (YoY)

• Novelis' quarterly adjusted Ebitda rose 22% to $553 million on the back of higher volumes and favourable product mix, among other reasons.

• The Ebitda of its Indian aluminium business increased 173% over the preceding year to a record Rs 3,247 crore. That came amid favourable macros, improved product mix, higher volumes and better operating efficiencies.

• Copper unit's Ebitda rose 45.4% to Rs 352 crore aided by higher volumes, better operational efficiencies and improved by-product realisations.

“Our record-breaking performance this quarter is an affirmation of our fully integrated business model, which powers our performance in both upstream and downstream markets," Satish Pai, managing director of Hindalco Industries, was quoted as saying in a statement.

Hindalco, Pai said, reported "standout performances" across segments. "The Indian aluminium business set a near global industry record by achieving Ebitda margin of 42%. Copper business delivered the highest-ever quarterly sales in Q2, with both smelters running optimally to meet the robust market demand," he said. "Novelis once again achieved a record EBITDA per ton driven by higher volumes and favourable metal prices."

"Our product-rich portfolio strategy continues to deliver results across diverse market scenarios," Pai said. "It encourages us to keep building the downstream asset base and expand our market footprint."