Hindalco Industries, an Aditya Birla group company, has reported the highest ever consolidated net profit which was up 47 per cent at ₹4,119 crore in the June quarter against ₹2,787 crore logged in the same period last year, largely due to lower base effect and higher realisation.

Revenue increased 40 per cent to ₹58,018 crore (₹41,358 crore). EBITDA in aluminium upstream business was up 41 per cent at ₹3,272 crore (₹2,317 crore) on higher LME prices. However, it dipped 13 per cent on a sequential basis. Downstream aluminium EBITDA increased over three times year-on-year to ₹158 crore (₹39 crore) while that of copper more than doubled to ₹565 crore (₹261 crore). Overall EBITDA increased27 per cent to ₹8,640 crore (₹6,790 crore).

Satish Pai, Managing Director, Hindalco Industries, said the upstream aluminium business will continue to face pressure due to falling LME prices on back of slowing Chinese economy but the impact would be moderated by falling raw material prices.

No plan to cut capex

The company does not plan to cut capex plan of ₹3,000 crore in this fiscal despite talks of a global recession. Depending on how soon the expansion plans are finalised on the ground, the company will be allocating about ₹2,500 crore in the next three months, he said.

The coal supply for non-power sector has improved and this should ease the cost pressure going ahead, added Pai.

Novelis results

Novelis reported its highest-ever quarterly adjusted EBITDA of $561 million ($555 million), primarily due to higher product pricing, favourable product mix and higher recycling benefits. Its net income was up 1 per cent at $307 million, mainly driven by higher EBITDA, unrealised derivative gains and a lower tax provision in the current year.

Revenue was up 32 per cent at $5.1 billion ($3.9 billion), driven by higher global aluminium prices.

Debt picture

With the ensuing recession trend in the US and Europe, Pai said he is cautiously optimistic on global business while demand in India is expected to be strong given the good monsoon, falling inflation and dip in raw material prices.

Hindalco will also repay debt of ₹4,500 crore in the next few months. Net debt of the company increased to ₹42,193 crore against ₹39,096 crore in the March quarter due to higher drawings for working capital. Shares of the company were up 5 per cent at ₹442 on Wednesday.

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