Hindalco Ind shares climb after reporting 123% jump in Q2FY25 net profits

Shares of Hindalco Industries surged up to 2.77 per cent to hit an intraday high of Rs 673.50 per share on the BSE after the company on Monday announced its second quarter earnings for the financial year 2024-25 (Q2FY25). 

 

Hindalco Industries, the metal flagship of the Aditya Birla Group, reported a 123.3 per cent year-on-year (Y-o-Y) jump in net profit to Rs 1,891 crore for Q2FY25, up from Rs 847 crore in the same quarter last year. 

 

Revenue from operations grew 7.7 per cent to Rs 22,262 crore, while earnings before interest, tax, depreciation, and amortisation (Ebitda) surged 56.5 per cent to Rs 2,749 crore, with an improved margin of 12.4 per cent compared to 8.5 per cent in Q2FY24. 

 

Hindalco's aluminium upstream segment saw a significant 80 per cent rise in Ebitda per tonne to $1,349, with industry-leading margins of 41 per cent. The copper business set a record, posting Ebitda of Rs 829 crore, up 27 per cent Y-o-Y. However, Novelis faced challenges due to the Sierre flood and tighter scrap spreads; excluding flood impacts, shipments rose by 4 per cent, and Ebitda per tonne stood at $502. 

 

In India, Hindalco’s aluminium upstream revenue rose 16 per cent to Rs 9,125 crore, with Ebitda growing 79 per cent to Rs 3,709 crore. Downstream revenue increased 20 per cent to Rs 3,161 crore, with a 10 per cent rise in sales, though downstream Ebitda per tonne fell 11 per cent to $179. 

 

Copper revenue grew 5 per cent to Rs 13,114 crore, with Ebitda reaching an all-time high of Rs 829 crore. However, copper metal sales declined by 13 per cent to 117 KT, and continuous cast rod sales dropped by 10 per cent to 90 KT. 

 

Moreover, Hindalco maintained strong cash flow, keeping its net debt-to-Ebitda ratio below 1.2x.

Hindalco Industries share price history

The company’s stock has underperformed the market year to date as it has risen 8.4 per cent, while gaining 37 per cent in the last one year. In comparison BSE Sensex has risen 9.9 per cent year to date and 21.7 per cent in a year. 

 

The company has a total market capitalisation of Rs 1.48 trillion. Hindalco's shares are trading at a price to earnings multiple of 26.24 times and at an earning per share of Rs 24.97. 

 

At 10:19 AM; the shares of the company pared most of its gains and were trading 0.81 per cent higher at Rs 660.50 a piece. By comparison, the BSE Sensex was down 0.19 per cent at 79,644.46 level.