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Hindalco Q3 PAT tumbles 63% YoY to Rs 1,362 cr

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Capital Market
Last Updated : Feb 09 2023 | 3:50 PM IST

On a consolidated basis, the aluminium major's net profit tumbled 63% to Rs 1,362 crore on 6% increase revenue from operations to Rs 53,151 crore in Q3 December 2022 over Q3 December 2021.

Net profit was impacted by elevated input costs, unfavourable macros and inflationary impacts. Revenue growth was driven by higher volumes and steady operational performance across India operations.

Profit before exceptional items and tax tumbled 76% YoY to Rs 1,214 crore in Q3 December 2022.

EBITDA fell 48% YoY to Rs 3,930 crore in Q3 December 2022, impacted by rising input costs and unfavourable macros, partially offset by better operational performance of copper and downstream businesses.

Consolidated net debt to EBITDA remained strong at 1.60x on 31 December 2022 compared with 1.62x on 31 December 2021.

Novelis' revenue in Q3 FY23 stood at $4.2 billion (vs $4.3 billion), down 3% YoY, driven by lower average aluminium prices and lower shipments in Q3 FY23.

Aluminium upstream revenue was Rs 8,046 crore in Q3 FY23 vs Rs 8,019 crore in the prior year period. Aluminium downstream revenue was Rs 2,647 crore in Q3 FY23 vs Rs 2,885 crore in the prior year period.

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Revenue from the copper business was Rs 10,309 crore this quarter, up 1% YoY, on account of higher volumes in Q3 FY23.

Satish Pai, managing director, Hindalco Industries, said: "We are seeing core industries worldwide being buffeted by macro-economic and inflationary cost pressures, yet we delivered a strong operational performance with higher volumes across India business segments.

Though the India Aluminium upstream business EBITDA came under pressure from the surge in input costs and lower realisations, this was partially offset by higher volumes. The India Aluminium downstream business segment delivered a higher EBITDA YoY, due to higher volumes and better pricing. The Copper business registered a 40% growth in EBITDA driven by higher volumes and better realisations, supported by a robust domestic demand. Novelis witnessed unprecedented inflationary pressures, unfavourable foreign exchange rates and lower shipments; this was partially offset by higher pricing and a favourable product mix.

Despite the hits of this quarter due to external factors, we believe the long-term story remains positive backed by our strong balance sheet and resilient business model."

Hindalco Industries, the metals flagship company of the Aditya Birla Group, is the world's largest aluminium company by revenues, and a major player in copper. It is also one of Asia's largest producers of primary aluminium.

Shares of Hindalco Industries rose 2.48% to Rs 447.10 on the BSE.

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First Published: Feb 09 2023 | 3:24 PM IST

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