Companies

Hindalco net up 77% on higher realisation, lower cost

Our Bureau Mumbai | Updated on February 10, 2021 Published on February 10, 2021

Hindalco Industries, an Aditya Birla Group company, has reported that its net profit increased 77 per cent to ₹ 1,877 crore against ₹ 1,062 crore logged in the same period last year, on the back of higher realisation and lower cost.

Revenue from operation was up 20 per cent at ₹ 34,958 crore (₹ 29,197 crore). Ebitda during the quarter jumped 50 per cent to ₹ 5,521 crore (₹ 3,676 crore).

Satish Pai, Managing Director, Hindalco Industries, said the demand for aluminium, both in domestic and global markets, bounced back sharply and is expected to touch one million tonne in the fourth quarter.

On the back of steady cash generated and revival in economy, the company will take a call on the capital allocation between capex, debt deleveraging and dividend payment to shareholders in next few weeks, he said.

Consolidated gross debt of the company has come down to ₹71,996 crore (₹78,265 crore).

Dip in production

Revenue from aluminium business in India was down at ₹5,294 crore (₹5,483 crore) as the metal production was down at 3,15,000 tonnes (3,28,000 tonnes). Volume of aluminium value-added products sales was up seven per cent at 80,000 tonnes (75,000 tonnes). The company expects to complete Utkal Alumina expansion of 500,000 tonnes by June.

Copper cathode production was down at 51,000 tonnes (87,000 tonnes) due to planned maintenance shutdown in one of the smelters. It achieved highest ever fertiliser sales volume more than doubled to at 156,000 tonnes (67,000 tonnes) on the back of robust demand. Revenue from copper business was up 28 per cent at ₹6,133 crore (₹4,774 crore). However, Ebitda was down at ₹202 crore (₹256 crore).

Hindalco’s wholly-owned subsidiary Novelis reported highest ever sales of 9,33,000 tonnes (7,97,000 tonnes) and 82 per cent rise in net income to $195 million ($107 million). Novelis has repaid $500 million of the $1.1-billion bridge loan taken for Aleris acquisition and plans to repay the remaining $600 million by March to bring down the net debt to equity ratio close to 3 from current level of 3.3, said Pai.

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Published on February 10, 2021
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