Hindalco Industries gained 0.89% to Rs 547.20 after the company reported a 96% jump in consolidated net profit to Rs 3,675 crore in Q3 FY22 from Rs 1,877 crore reported in Q3 FY21.
Consolidated revenue from operations grew by 44% to Rs 50,272 crore in Q3 FY22 from Rs 34,958 crore posted in Q3 FY21. Consolidated profit before tax came at Rs 5,198 crore in Q3 FY22, 84% higher than Rs 2,829 crore posted in Q3 FY21.EBITDA jumped 38% year on year to Rs 7,624 crore in Q3 FY22 from Rs 5,521 crore posted in Q3 FY21. Consolidated net debt to EBITDA was at a strong 1.62 times on 31 December 2021 compared to 2.59 31 on March 2021.
Hindalco said robust results were driven by a consistent performance by Novelis and an exceptional performance by India Business, supported by favorable macros, strategic product mix and an improved performance by the downstream business.
Novelis:
Novelis' net income from continuing operations was at $259 million, up 33% year on year, mainly driven by lower interest expense in Q3 FY22. Revenue stood at $4.3 billion (vs $3.2 billion), up 33% year on year, driven by higher global aluminium prices.
Novelis recorded quarterly adjusted EBITDA of $506 million (vs $501 million), up 1% YoY, on the back of strong product pricing and mix as well as favourable metal benefits, which mitigated inflationary cost pressures and supply chain disruption-related costs. Novelis reported an adjusted EBITDA per ton of $544 in Q3 FY22, compared to $537 in the prior year, an increase of 1% YoY.
Aluminium India:
More From This Section
Revenue of Aluminium India stood at Rs 8,243 crore in Q3 FY22 as compared to Rs 5,294 crore in the prior year period. Aluminium India Business recorded metal production of 327 Kt in Q3 FY22 as compared to 315 Kt in the corresponding quarter. Aluminium metal sales were up 3% year on year at 325 Kt from 315 Kt registered in the prior year.
Aluminium India Business EBITDA was at an all-time high of Rs 3,376 crore in Q3 FY22, compared with Rs 1,461 crore posted in Q3 FY21, registering an increase of 131% year on year. EBITDA jump was on the back of favourable macros, higher volumes, better operational efficiencies and improved performance of downstream business. EBITDA margins were at 41% for Q3 FY22.
Copper Business:
Revenue from the Copper Business stood at Rs 10,255 crore this quarter, up 67% YoY, primarily due to higher global prices of copper and higher volumes. EBITDA for the business stood at Rs 390 crore in Q3 FY22 compared to Rs 240 crore posted in Q3 FY21, up 63% YoY on the back of higher volumes, better operational efficiencies and improved by-product realisations. Copper Cathode production was at 102 Kt in Q3 FY22, higher by 99% year on year. While overall copper metal sales were at 110 Kt (vs 73 Kt in Q3 FY21), Copper Continuous Cast Rod (CCR) sales in Q3 FY22 were up 9% YoY, at 71 Kt in line with market demand.
Commenting on the results, Satish Pai, MD of Hindalco Industries said, Our sustained performance and strong balance sheet are driving our plans for further organic capex. 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 too has announced capital projects that align market growth with sustainability considerations. An example is the $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. We foresee a surge in demand for Aluminium and Copper and are well-positioned to serve the market. We have already planned an investment of ₹825 crores under the Government's Production Linked Incentive (PLI) scheme reiterating our commitment to a self-reliant India.
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.
Powered by Capital Market - Live News