Hindalco Q1 profit surges 25%; Ananya, Aryaman Birla on company' s board

Appoints Ananya Birla and Aryaman Birla on board in non-executive role

KM Birla-promoted Hindalco Industries reported a 25.3 per cent rise in consolidated profit after tax (PAT) for the first quarter of financial year 2025 (Q1FY25), on the back of favourable macros, operational efficiencies and lower input costs, the company said.

For the quarter under review, the company reported a PAT of Rs 3,074 crore. Net sales for the same period was up 7.6 per cent to Rs 57,013 crore.
 

In a media call, company executives also said Hindalco will be interested in bidding for Hindustan Copper’s Jharkhand mines.

The company said it also took a one-time exceptional expense of Rs 330 crore in the quarter owing to a flood-impact at its Novelis plant located in Sierre, Switzerland. 
 

 

“Water entered the plant premises and production halls and plant operations have been halted,” the company said, adding, “As a result of this event, the Group recognised impairment on property, plant and equipment of Rs 250 crore and write down on inventory of Rs 80 crore during the quarter.”

 

In a Bloomberg poll, 13 analysts estimated a revenue of Rs 56,236 crore and 14 analysts estimated a net income adjusted of Rs 3,428 crore. The company missed street estimates. Sequentially, the company’s net profit dipped 3.2 per cent and net sales rose 1.8 per cent.
 

The company said that consolidated Ebitda was at Rs 7,992 crore, up 31 per cent from a year ago. Ebitda is earnings before interest, taxation, depreciation and amortisation.

The company added its copper segment Ebitda in this quarter was at an all-time high at Rs 805 crore, up 52 per cent from a year back. Satish Pai, managing director, Hindalco Industries, said, “The copper business achieved its highest quarterly Ebitda driven by high domestic sales (especially downstream products), healthy by-product credits and better operational efficiencies following a successful planned shutdown.
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In a post earnings media interaction, Pai said he expects India’s aluminium and copper demand to remain strong, fuelled by the electrical sector. He confirmed the company would be interested in bidding for Hindustan Copper’s Jharkhand copper mines if they were put for sale.
 

“Six months back, we initiated an offer, which was cancelled and we hear it is back on the market,” Pai added.

Sharing a rationale for the deferment of the Novelis initial public offering (IPO), Pai said the IPO was an exercise aimed at getting premium valuations for the company.

“But the US market conditions were not allowing it,” he said, adding hence the company has decided to postpone the IPO to a future time.

Amongst other expansions underway at the company, Pai said the it is exploring setting up a copper foil manufacturing unit. In addition, Hindalco is setting up a gallium extraction unit at its Renukoot facility with a Rs 150 crore investment and a 12-18 months’ timeline.

Commenting on the recent Supreme Court judgement on state levies on minerals, Pai said, “We do not have any retrospective exposure, but will wait and watch for prospective impact.”

On Jharkhand state’s recent move to levy cess on bauxite mining, Pai said the impact is limited to 10-12 per cent of the company’s supply that is sourced from that state.

Ananya, Aryaman Birla on company’ s board

Hindalco Industries on Tuesday approved the appointment of the next-promoter generation on its board in a non-executive role.
 

The company in its statement said its board has approved Ananya and Aryaman Birla’s appointment as additional, non-executive directors.
 

The board believes that Hindalco Industries will benefit from their new-age insights and business acumen, it said.
 

Commenting on the appointment, Kumar Mangalam Birla, chairman of the company and the group said, “Hindalco is now in the midst of yet another transformational growth phase, co-creating solutions that will harness the potential of aluminium and copper to drive the global energy transition and support the shift to a low-carbon future.”