Hindalco Industries Q4 Results: Profit Rises As Demand Surpasses Pre-Covid Level
Hindalco Industries Ltd. saw its profit rise, in line with estimates, benefiting from U.S. subsidiary Novelis Corp.’s quarterly performance and continued rebound in India business as demand rose above the pre-pandemic level.
Net profit of the billionaire Kumar Mangalam Birla-controlled aluminium maker rose 2.7% sequentially to Rs 1,928 crore in the quarter-ended March, according to an exchange filing. That compares with the Rs 1,847-crore consensus estimate of analysts tracked by Bloomberg.
Other highlights (QoQ)
Revenue rose 15.9% to Rs 40,507 crore, against a forecast of Rs 34,106.6 crore.
Earnings before interest, tax, depreciation and amortisation increased 5.9% to Rs 5,845 crore, compared with the estimated Rs 4,835 crore.
Operating margin stood at 14.4% against 15.8%.
“This past year, with all its volatility and uncertainty, has underscored Hindalco’s resilience and ability to deal with challenges. Our record Q4 results have strengthened our balance sheet even further, absorbing the Aleris acquisition and restoring consolidated net debt to Ebitda ratio to pre-acquisition levels. The Aleris business continues to positively impact the overall top line and Ebitda,” Satish Pai, managing director at Hindalco Industries, was quoted as saying in the filing. “Through Q4, our India business continued to rise with demand higher than pre-Covid levels.”
Ebitda stood at $501 million compared with $457 million in the quarter ended December. That was driven by continued demand for innovative, sustainable aluminium solutions.
The company announced growth capex of $1.5 billion, net leverage target of 2.5x and capital repatriation to parent, along with sustainability targets.
Hindalco Copper Division
The company’s copper division saw its Ebitda rise 33.2% sequentially to Rs 269 crore in the January-March period.
Hindalco Aluminum Division
Hindalco’s aluminium division’s Ebitda rose 21.6% sequentially to Rs 1,610 crore in the quarter under review.
That was driven by Novelis’ performance and India aluminium business, besides higher volumes and better product mix, lower input costs, stability in operations and cost saving measures, the company said in the statement.
Shares of Hindalco rose 1.74% after the results were announced, compared with a 1.8% gain in the benchmark Nifty 50.