Hindalco Industries Q1 Results: Standalone net profit drops 58% to ₹600 crore; revenue rises 2% YoY
2 min read 08 Aug 2023, 01:41 PM ISTHindalco Industries’ subsidiary Novelis’ Q1 revenue fell 14.4% to ₹33,606 crore from ₹39,289 crore, while its EBITDA declined 20.3% to ₹3,456 crore from ₹4,334 crore, YoY.
PremiumHindalco Industries, the aluminium major, on Tuesday reported a 58.6% drop in standalone net profit for the quarter ended June 2023 at ₹600 crore as compared to ₹1,448 crore in the year-ago quarter.
The Aditya Birla Group metals flagship company’s standalone revenue from operations in Q1FY24 increased 2% to ₹19,904 crore from ₹19,518 crore, YoY.
On a consolidated basis, Hindalco Industries' net profit fell 40.4% on-year to ₹2,454 crore, while revenue from operations declined nearly 9% YoY to ₹52,991 crore.
Earnings before interest, taxes, depreciation and amortization (EBITDA) during the quarter declined 46.7% to ₹1,561 crore from ₹2,927 crore, while EBITDA margin contracted significantly to 7.8% from 15%, YoY.
“An enhanced product mix saw the Aluminium India Downstream Business generating higher value, with Q1 EBITDA increasing by 31% QoQ. Despite significant market headwinds, Novelis continued to show sequential improvement in adjusted EBITDA and EBITDA per ton, backed by record sales of automotive aluminium sheets. The Copper Business achieved record metal sales and maintained its market share despite undergoing a planned shutdown," said Satish Pai, Managing Director, Hindalco Industries.
Novelis Q1 Results
Hindalco Industries’ subsidiary Novelis’ Q1 revenue fell 14.4% to ₹33,606 crore from ₹39,289 crore, while its EBITDA declined 20.3% to ₹3,456 crore from ₹4,334 crore, YoY.
“Total shipments of flat rolled products were at 879 Kt in Q1FY24 vs 936 Kt in Q4 FY23, down 6% QoQ due to lower beverage can shipments and unfavourable economic conditions impacting some specialties markets mainly in building & construction, partially offset by record automotive shipments," Hindalco Industries said in a regulatory filing.
Novelis’ revenue stood at $4.1 billion, down 7% QoQ, impacted by lower average aluminium prices and subdued shipments. Novelis reported an adjusted EBITDA of $421 million (vs $403 million), up 4% QoQ due to favourable product mix and better cost control. Novelis’ adjusted EBITDA per ton at $479 was up 11% sequentially, it added.
Aluminium Business
Among segments, Aluminium business revenue in Q1FY24 declined 8.2% to ₹10,499 crore from ₹11,439 crore in the year-ago quarter. Aluminium EBITDA plunged 39% to ₹2,082 crore from ₹3,430 crore, YoY.
Copper Business
Revenue from the Copper Business stood at ₹11,502 crore, up 9.2% from ₹10,529 crore, YoY. Copper EBITDA declined 6% to ₹531 crore from ₹565 crore, YoY.
Copper metal sales were at a record 118 Kt, up nearly 17% from 101 Kt, YoY. Copper Continuous Cast Rod (CCR) sales were also at an all-time high of 98 Kt.
At 2:10 pm, Hindalco Industries share price was trading 2.31% lower at ₹453.95 apiece on the BSE.
