Hindalco posts consolidated net profit of Rs 2,787 cr in June quarter

Hindalco Industries Ltd on Friday reported a consolidated profit after tax of Rs 2,787 crore for the quarter ended on June 30, 2021.

The Aditya Birla group's metal major had posted a consolidated loss of Rs 709 crore in the year-ago period.

The consolidated revenue from operations during April-June increased to Rs 41,358 crore from Rs 25,283 crore in the year-ago period, according to a regulatory filing by the company.

"Hindalco Industries...delivered stellar results in Q1 FY22 recording its highest-ever quarterly net profits. The company's consolidated PAT was at Rs 2,787 crore," the company said in a statement.

The results were driven by a strong performance by Novelis and India business, supported by favourable macros, strategic product mix, and stability in operations.

 

Novelis reported an all-time high quarterly EBITDA, as a result of upswing in demand for innovative and sustainable aluminium products and an outstanding operational performance, the statement 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," Hindalco Industries Managing Director Satish Pai said.

"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 derisk plant facilities by taking all COVID-appropriate measures," he said.

The company, he said, has started FY'22 at a strong pace and "we are confident that our resilience against market swings will support us in continuing to deliver its best. More importantly, we believe our focus on setting and achieving carbon neutrality and other ESG goals will keep Hindalco in the leadership position as the world's most sustainable aluminium value-added player.

The company said that the gross debt declined by Rs 16,345 crore and net debt fell by Rs 10,389 crore as of June 30, 2021, from its peak on June 30, 2020.

Hindalco has prepared to tackle the third wave of Covid by fortifying its efforts to protect employees and the community.

Over 51,000 employees have been vaccinated with at least one dose. In some states, the government is collaborating with Hindalco to vaccinate the local population at the company's own hospitals and health centres.

Hindalco's dedicated team of 77 doctors and 245 paramedics is working round the clock to serve employees and the community.

Hindalco has boosted medical infrastructure and equipped its own hospitals and health centres with critical care equipment such as CT scan machines, set up oxygen lines in remote locations to serve patients needing ICU care, and enhanced its lab testing facilities.

Hindalco has strengthened its medical teams, including adding pediatricians, and upskilling its paramedics.