Companies

Hindalco net up eight times to ₹3,417 crore in Q2

Our Bureau | | Updated on: Nov 12, 2021

Satish Pai, MD, Hindalco Industries | Photo Credit: PAUL NORONHA

Lower base, sharp increase in realisation boost numbers

Hindalco Industries, an Aditya Birla Group company, has reported that its net profit jumped over eight times in the September quarter to ₹3,417 crore against ₹387 crore in the same period last year, largely on lower base and sharp increase in realisation.

Revenue from operations was up 53 per cent at ₹47,665 crore (₹31,237 crore). EBITDA soared 56 per cent to ₹8,048 crore (₹5,171 crore).

On a sequential basis, the net profit was up 23 per cent from ₹2,787 crore recorded in June quarter while revenue increased 15 per cent from ₹41,358 crore registered in June quarter.

Revenue from aluminium business was up 63 per cent at ₹7,812 crore, against ₹4,796 crore in same period last year while EBITDA hit an all-time high of ₹3,247 crore (₹1,188 crore) on favourable macros and higher volumes. EBITDA margins touched over a decade high of 42 per cent. Aluminium sales were up 12 per cent at 3.38 lakh tonne (3.03 lt).

Cathode production increased 38 per cent to 1 lt (73 lt) while copper cathode rod output remained at 65,000 tonnes. EBITDA of copper business was up 45 per cent at ₹352 crore (₹242 crore) on improved by-product realisation.

Enhancing capacity

The US subsidiary of Hindalco, Novelis will invest $130 million to enhance capacity by 1.24 lt and improve finish capability for auto sheets at Oswego, US. It recorded 16 per cent increase in EBITDA per tonne of $571 ($493) on higher shipments and firm global aluminium prices.

Gross debt of the company was down at ₹66,831 crore (₹78,266 crore) and it repaid ₹1,005 crore in the September quarter.

Satish Pai, Managing Director, Hindalco Industries, said the product-rich portfolio strategy continues to deliver results across diverse market scenarios and encourages the company to keep building the downstream asset base.

The recent Ryker copper rod unit acquisition is in keeping with downstream capex plans announced earlier this year, he added.

Published on November 12, 2021
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