On a consolidated basis, Hindalco Industries' net profit soared 76.74% to Rs 1,877 crore on 19.73% increase in revenue from operations at Rs 34,958 crore in Q3 December 2020 over Q3 December 2019.
Consolidated profit before tax (PBT) surged 91.01% to Rs 2,829 crore in Q3 December 2020 over Q3 December 2019. Tax expense for the quarter jumped 92.84% to Rs 808 crore as against Rs 419 crore in Q3 December 2019. The Q3 result was declared during trading hours today, 10 February 2021.
The results were driven by a strong performance by Novelis and India aluminium business, supported by higher volumes and better product mix, lower input costs, stability in operations and cost saving actions. The copper business maintained its performance sequentially in Q3 FY21 versus Q2 FY21. Novelis reported an all-time high EBITDA as well as EBITDA per ton, as a result of continued demand for innovative, sustainable aluminium solutions and outstanding operational performance across its expanded business.
Business EBITDA stood at Rs 5,242 crore in Q3 FY21 over Rs 3,733 crore in Q3 FY20, recording a growth of 40% Y-o-Y (year-on-year), driven by the best-ever quarterly performance by Novelis and a sharp recovery in all relevant markets in India aluminium business. The consolidated net debt to EBITDA ratio has improved to 3.09x on 31 December 2020 from a peak of 3.83x on 30 June 2020.
Commenting on the Q3 results, Satish Pai, the managing director of Hindalco Industries, said: "Our Q3 results flag a return to business at pre-COVID levels with resurgent demand globally. Novelis achieved record shipments, driven by strong demand across product end markets. The India Business delivered an excellent performance with Aluminium value-added products continuing to record higher volumes."
"Along with market performance, we have strengthened our balance sheet which shows in a significant improvement in the consolidated net debt to EBITDA ratio. The inclusion of the Aleris business has positively impacted the overall top line and EBITDA, with realisation of synergies at $54 million on a run-rate basis in Q3. Our performance is a reflection of our sustainability-led approach to business. Hindalco has been recognised as the world's most sustainable aluminium company in the 2020 DJSI CSA ranking," he added.
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Novelis recorded its best-ever quarterly adjusted EBITDA of $501 million in Q3 FY21 over $343 million in Q3 FY20, registering a growth of 46% Y-o-Y (year-on-year), on the back of higher volumes and improved margins. Adjusted EBITDA per ton was at an all- time high of $537 per ton in Q3 FY21 as against $430 per ton, rising 25% Y-o-Y. Novelis' net income (excluding tax-effected special items) was at a record high of $209 million, jumping 58% Y-o-Y, partially offset by higher depreciation and amortization associated with the acquisition of Aleris. Revenue stood at $3.2 billion in Q3 FY21 over $2.7 billion in Q3 FY20, jumping 19% Y-o-Y, due to higher shipments, global aluminium prices and market premiums. Total shipments of flat rolled products (FRPs) were at an all-time high of 933 Kt as compared to 797Kt, gaining 17% Y-o-Y, with the addition of the acquired Aleris business and strong demand across end-product markets.
Shares of Hindalco Industries rose 0.43% to Rs 279.50. Hindalco Industries, the metals flagship company of the Aditya Birla Group, is the world's largest aluminium rolling and recycling company, and a major copper player. It is also one of Asia's largest producers of primary aluminium.
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