Hindalco Industries Q2 Results: Net up 59% on firm metal prices

Hindalco Industries, an Aditya Birla group company, has reported that its net profit in the September quarter was up 59 per cent at ₹7,533 crore, against ₹4,741 crore on the back of better realisation.

Revenue increased 39 per cent to ₹91,708 crore (₹66,058 crore). Ebitda was up 42 per cent at ₹13,757 crore (₹9,684 crore).

Aluminium sales were almost flat at 3.45 lakh tonnes (3.41 lt) year-on-year, but revenue increased 33 per cent to ₹13,364 crore (₹10,078 crore), while Ebitda jumped 55 per cent to ₹7,009 crore (₹4,524 crore). Ebitda per tonne was up at $2,125 ($1,521) in the quarter under review.

Aluminium downstream sales increased 6 per cent to 1.19 lt and revenue was up 45 per cent to ₹5,511 crore. Aluminium Downstream EBITDA increased 26 per cent to ₹329 crore supported by a favourable product mix, premiumisation and higher shipments.

Satish Pai, Managing Director, Hindalco Industries, said despite high coal and CP coke prices, the company has delivered record profit on the back of an integrated business model across upstream metals and downstream value-added products.

While the aluminium upstream business registered EBITDA growth of 55 per cent, the non-LME-linked businesses also recorded Ebitda growth of nearly 50 per cent, supported by stable operations at Novelis and a record quarter in the Copper Downstream and Aluminium Downstream businesses, he said.

“We expect coal prices to increase further by 5 per cent in the December quarter due to higher demand and tight supply. The current coal inventory levels in the factory are low and the company has to buy the spot auction as the linkage supply was curtailed,” he said.

Looking ahead, the commissioning and ramp-up of Bay Minette, copper recycling, aluminium battery foil, Aditya FRP and Inner Grooved Tubes will further accelerate the share of non-LME-linked businesses, said Pai.

Copper metal sales was up 2 per cent at 1.16 lakh tonne, while Copper Continuous Cast Rod sales were flat at 96,000 tonnes year-on-year.

Revenue from the copper business increased 47 per cent to ₹21,374 crore due to high metal prices and better by-product realisations.

Aluminium prices are expected to cool-down between $2,600-$2,800 a tonne in FY’28 if the geo-political issues settle down, bringing back supplies from West Asia, said Pai.

However, the company’s focus on non-LME business should protect the profit pool, he added.