 "Hindalco Industries Ltd, Hindalco sustainable mining")
Metal manufacturer Hindalco Industries has reported a 31.6 per cent rise in its consolidated profit for the March 2024 quarter (Q4FY24) owing to lower costs and higher realisations.
Top executives of the firm said Hindalco would scout for critical mineral mines in India.
For the quarter under review, Hindalco reported a net profit of Rs 3,174 crore. The rise, the company said, was driven by robust performance and improved margins across all business segments. Revenue in the same period was flat at Rs 55,994 crore from Rs 55,857 crore a year ago.
Hindalco beat street estimates. In a Bloomberg poll, 11 analysts estimated revenue of Rs 53,959 crore and 12 analysts estimated an adjusted net income of Rs 2,799 crore.
Sequentially, Hindalco’s net profit grew 36.2 per cent and revenue went up 6 per cent.
Earnings before interest, tax, depreciation and amortisation (Ebitda) for the quarter, the company said, were Rs 7,201 crore, up 24 per cent year-on-year (Y-o-Y), driven by lower input costs and higher volumes.
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In a media call after the results, Satish Pai, managing director, said Hindalco had won a copper mine in the recent round of critical minerals auctions. He also said the company was in the process of participating in auctions for two other mines -- of nickel and cobalt -- in Maharashtra and Karnataka.
The top executive added the company would focus on critical mineral assets in India, and not scout for assets outside the country.
Hindalco participated in a lithium mine auction, but did not win one in the last round, Pai said.
Commenting on the company’s strategy for captive coal mines, Pai said Hindalco would not bid for any new coal mines. The new strategy, he said, showed Hindalco’s plans to power all new capacities with green energy.
In 2023-24, the company repaid loans worth Rs 5,195 crore. For this financial year, the company plans to spend close to Rs 6,000 crore as capital expenditure in India, fully funded through internal accruals.
Hindalco is listing its wholly-owned subsidiary Novelis in the US. All proceeds from the IPO will accrue to Hindalco as the sole promoter. In Friday’s call, Hindalco’s management did not respond to any queries on the rationale of the listing or using its proceeds, stating a mandated silent period.
Segment-wise, the company said its copper business delivered an all-time high Ebitda of Rs 776 crore, up 30 per cent Y-o-Y, backed by record sales. The company added the copper business had grown to become the second-largest in the world for copper rods, excluding China. It achieved its best ever performance with sales crossing 500,000 tonnes for the first time.
In his guidance for this financial year, Pai said he expected demand for aluminium and copper to remain robust and expected a good year, if there was no major monsoon-related disruption.
