Hindalco Industries reported a consolidated net profit of Rs 2,787 crore in Q1 FY22 as against a net loss of Rs 709 crore in Q1 FY21.
Revenue from operations rose 63.6% YoY to Rs 41,358 crore during the quarter.
Consolidated EBITDA in Q1 FY22 was at Rs 6,790 crore, up 188% YoY and 16% QoQ.
The company's strong results were driven by an outstanding performance by Novelis as well as India business, supported by a sharp recovery in all relevant markets, and improved macros.
Novelis' revenue was $3.9 billion (vs $2.4 billion), up 59% YoY, due to higher shipments, global aluminium prices and market premiums. Total shipments of flat rolled products (FRPs) were at 973 Kt (vs 774 Kt), up 26% YoY, with strong demand across end-product markets particularly beverage packaging and specialty products, partially offset by some headwinds in the automotive industry on account of the semiconductor chip shortage.
Novelis recorded its best-ever quarterly adjusted EBITDA of $555 million (vs $253 million), up 119% YoY, on the back of higher volumes, favourable product mix and metal benefits, and a $47 million gain related to a favourable decision in a Brazilian tax litigation.
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Novelis achieved an Adjusted EBITDA per ton of $570 in Q1 FY22, compared to $327 in the prior year, an increase of 75% YoY. Excluding the non-recurring tax litigation benefit, Adjusted EBITDA per ton equates to $522 in the first quarter of FY22.
Aluminium India business revenue was Rs 6,267 crore in Q1 FY22 vs Rs 4,436 crore in the prior year period. The business recorded metal production of 319 Kt vs 291 Kt in the corresponding period. Aluminium metal sales were flat YoY at 303 Kt.
Aluminium VAP (excluding wire rods) sales volumes were at 82 Kt (vs 35 Kt), up 137% YoY, driven by a sharp recovery in the domestic market. VAP sales, as a percentage of total metal sales, were 27% this quarter vs 11% in the same quarter last year, in line with market recovery
The business's EBITDA was at an all-time high of Rs 2,352 crore in Q1 FY22, compared with Rs 973 crore for Q1 FY21, an increase of 142% YoY, primarily due to favourable macros, improved product mix and better operational efficiencies.
Revenue from the Copper business was Rs 7,094 crore this quarter, up 134% YoY, primarily due to higher global prices of copper. EBITDA for the business stood at Rs 261 crore compared to Rs 66 crore in Q1 FY21, up 295% YoY.
Copper Cathode production was at 63 Kt in Q1 FY22 (vs 41 Kt in Q1 FY21), higher by 52% YoY. While overall copper metal sales were at 80 Kt (vs 58 Kt in Q1 FY21), Copper continuous cast rod (CCR) sales in Q1 FY21 were up 50%, at 46 Kt (vs 31 Kt in Q1 FY21), driven by market recovery.
Hindalco's gross debt declined by Rs 16,345 crore and net debt fell by Rs 10,389 crore as of 30 June 2021 from its peak on 30 June 2020. Consolidated net debt to EBITDA ratio improved further to 2.36x on 30 June 2021, from a peak of 3.83x on 30 June 2020.
Satish Pai, managing director, Hindalco Industries, said, This quarter we delivered record-breaking financial results despite the impact of the COVID second wave. Our robust financial performance, accelerated pace of deleveraging and the increasing strength of our balance sheet has been recognised by the market and is reflected in credit rating upgrades for both Novelis and Hindalco.
The improvement is visible across all our business segments where we are seeing strong demand, plants running at capacity, and better margins. We continue to keep employees protected and de-risk plant facilities by taking all COVID-appropriate measures.
We have started FY22 at a strong pace and we are confident that our resilience against market swings will support us in continuing to deliver our best.
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.
The scrip shed 0.51% to currently trade at Rs 440.80 on the BSE.
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