 "Hindalco")
Hindalco Industries on Tuesday reported a 40.4 per cent year-on-year (YoY) drop in consolidated net profit for the June 2023 quarter to Rs 2,454 crore. Its revenue from operations declined nearly 9 per cent YoY to Rs 52,991 crore. Sequentially, the consolidated PAT was up 2 per cent.
The company's sales rose 2 per cent YoY to Rs 19,904 crore. The consolidated operating profit, calculated as earnings before interest, taxes, depreciation and amortisation (Ebitda), fell 32 per cent on year to Rs 5,714 crore.
Raw material costs declined to Rs 31,786 crore in the quarter, from Rs 35,313 crore a year ago. Power and fuel expenses were down to Rs 3,757 crore from Rs 4,018 crore YoY.
The net sales in Hindalco's US unit Novelis, which accounts for over 63 per cent of the company's total revenue, fell about 20 per cent. Novelis, the world's largest rolled aluminium producer, reported a 25 per cent year-on-year fall in core profit.
The company said the drop was "primarily driven by lower shipments, cost inflation, and less favourable metal benefit from recycling." Additionally, a drop in prices of metals such as copper and aluminium during the quarter also hurt the profits of non-ferrous metal companies like Vedanta and Vedanta Group-owned Hindustan Zinc.
Hindalco's aluminium upstream and downstream businesses experienced 7 per cent and 11 per cent declines in revenue, respectively, while its copper segment reported a 9 per cent growth.
"Despite significant market headwinds, Novelis continued to show sequential improvement in adjusted Ebitda and Ebitda per ton, backed by record sales of automotive aluminium sheets," said Satish Pai, managing director of Hindalco Industries.
More From This Section
Shares of Hindalco, the flagship metals producer of the Aditya Birla Group, fell as much as 2.2 per cent after the results and were among the top losers on the benchmark Nifty 50 index.
(With agency inputs)
