Hindalco Q4 Review - Outlook Strong On Higher LME Prices: Motilal Oswal

Flames rise from molten aluminum in a molding unit at the aluminium processing plant. (Photographer: Akos Stiller/Bloomberg)

Hindalco Q4 Review - Outlook Strong On Higher LME Prices: Motilal Oswal

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Motilal Oswal Report

Hindalco Industries Ltd.’s Q4 FY21 earnings for the India business was strong, as expected, with Ebitda up 23% QoQ to Rs 18.8 billion on higher London Metal Exchange prices.

Consolidated net debt declined Rs 64 billion QoQ to Rs 474 billion and net debt/Ebitda ratio declined to 2.6 times (versus a peak of four times post the Aleris acquisition).

Despite rising costs, we estimate India Ebitda/tonne in FY22E to be the highest ever in the last 10 years at $865/tonne.

We expect 35% earnings per share compound annual growth rate over FY21-23E, led by stronger LME prices and lower interest cost from deleveraging.

Click on the attachment to read the full report:

Motilal Oswal Hindalco Q4FY21 Result Update.pdf


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