Firm aluminium prices, lower cost to boost Hindalco Q3 profit

Mumbai

Hindalco Industries, an Aditya Birla Group company, is expected to report 62 per cent increase in the December quarter net profit on back sharp in aluminium prices and strong EBITDA.

However, Hindalco’s subsidiary Novelis reported 32 per cent fall in adjusted net income to $119 million. Adjusted EBITDA fell 19 per cent to $367 million due to higher aluminium scrap prices and an unfavourable product-mix, leading to a 19 per cent decline in EBITDA per tonne to $406.

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Hindalco will declare Q3 results on Thursday.

Hindalco’s revenue may increase 11 per cent YoY, led by higher Aluminium and alumina prices.

EBITDA is likely to improve 28 per cent YoY due to higher metal prices along with lower power costs in India.

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Nuvama Research expects aluminium EBITDA to increase to ₹4,790 crore supported by higher aluminium prices and alumina prices along with marginal higher volume.

Copper EBITDA to be lower at ₹650 crore.

Kotak Equities Research has estimated India EBITDA at ₹5,070 crore with aluminium EBITDA (including Utkal) of ₹4,310 crore, led primarily by higher prices and Copper EBITDA of ₹760 crore, led by resilient TcRcs and high sequential base.