Hindalco Q3 results: Consolidated PAT nearly doubles to Rs 3,675 cr

Aluminium major Hindalco Industries on Thursday reported 96% jump in consolidated net profit at Rs 3,675 crore for the quarter ending December 31, 2021. It reported net profit of Rs 1,877 crore in Q3FY21.

Consolidated revenue from operations rose 44% to Rs 50,272 crore from Rs 34,958 crore in the year-ago period.

At 1420 hours on Thursday, the company's scrip on BSE was trading 0.5% higher at Rs 545.10.

The results were driven by positive macros and focus on downstream value-added products along with better operating efficiencies.

The company said that it reported its highest net profit in Q3FY22, surpassing all previous quarterly performances.

The results were driven by a consistent performance by Novelis and an exceptional performance by India business, supported by favourable macros, strategic product mix and an improved performance by the downstream business.

"Novelis continued to report consistent quarterly Ebitda despite challenges in the automotive segment due to the global semiconductor chip shortage, unplanned production downtime in South America and supply chain bottlenecks in Asia," it said.

Ebitda stands for earnings before interest, tax, depreciation and amortisation.

Hindalco Industries Managing Director Satish Pai said, "Our sustained performance and strong balance sheet are driving our plans for further organic capex (capital expenditure). We have already announced over Rs 3,000 crore investments in our downstream pipeline – Hirakud and Silvassa, and the acquisitions of Ryker and Hydro's Kuppam units." Novelis has also announced capital projects that align market growth with sustainability considerations, Pai said.

"An example is the USD 365 million closed-loop recycling and casting centre for the North American market. Budget 2022 made clear the Indian government's intent and impetus on infrastructure," he said.

Pai also said the company expects a surge in demand for aluminium and copper and is well-positioned to serve the market.