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Hindalco Industries, an Aditya Birla Group, has reported 32 per cent rise in March quarter net profit at ₹3,174 crore against ₹2,411 crore logged in the same period last year, largely due to lower cost and better realisation.
Revenue from operations was flat at ₹55,994 crore (₹55,857 crore). EBITDA was up 24 per cent at ₹7,201 crore (₹5,818 crore).
The company has declared a dividend of ₹3 per equity share.
Aluminium upstream EBITDA increased 24 per cent at ₹2,709 crore, while that of copper hit an all-time high at ₹776 crore — up 30 per cent. Aluminium upstream revenue was up 5 per cent at ₹8,469 crore (₹8,050 crore). Downstream aluminium EBITDA per tonne was up 15 per cent at $174 ($152).
Hindalco, through a special purpose vehicle, has acquired 74 per cent stake in fabrication facility of HBT in Pune for ₹34 crore to make doors and windows. HBT sells its products under Eternia brand.
Satish Pai, Managing Director, Hindalco Industries, said the growth in profit was driven by better demand, lower operational cost and higher realisation in both aluminium and copper.
“We expect coal and other input cost to remain flattish in June quarter with a stable demand scenario. However, imports from China remain a major concern,” he added.
In preparation for disruption of coal supply during monsoon, the company has increased inventory up to 30 days against 15-17 days in normal circumstances.
New orders
The company plans to invest ₹6,000 crore this fiscal in ongoing projects including aluminium flat rolled products, alumina refinery, copper recycling plant and battery foil manufacturing. It has repaid ₹5,195 crore debt to bring down the net debt to ₹31,536 crore in March quarter against ₹34,835 crore in December quarter.
The company has acquired fresh orders to supply aluminium to make six railway wagons for a leading cement company and bagged contracts to supply aluminium cases for making electric vehicle batteries for a automobile company in Pune.
“We are in talks with another two more automobile companies to sign similar contracts,” said Pai.
The company was not affected by the Red Sea crisis as its exports to Europe was limited. However, aluminium scrap imports have come down due to sharp increase in shipping cost, he added.
In FY24, Hindalco’s net profit was flat at ₹10,155 crore (₹10,097 crore) while revenue was down at ₹2.16-lakh crore (₹2.23-lakh crore).
Shares of the company was down 0.51 per cent at ₹673 on Friday.
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