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Aditya Birla Group's metal flagship Hindalco Industries Ltd on Monday (November 11) reported a 123.3% year-on-year (YoY) jump in net profit at ₹1,891 crore for the second quarter that ended on September 30, 2024, driven by a strong operational performance by its Indian business, favourable macros and prudent cost management.
In the corresponding quarter of the previous fiscal, Hindalco Industries posted a net profit of ₹847 crore, the company said in a regulatory filing. The CNBC-TV18 poll had predicted a profit of ₹1,250 crore for the quarter under review.
The company's revenue from operations increased 7.7% to ₹22,262 crore against ₹20,676 crore in the year-ago period. The CNBC-TV18 poll had predicted revenues of ₹21,350 crore for the quarter under review.
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At the operating level, EBITDA jumped 56.5% to ₹2,749 crore in the second quarter of this fiscal over ₹1,756 crore in the same period last fiscal. The CNBC-TV18 poll had predicted an EBITDA of ₹2,495 crore for the quarter under review.
The EBITDA margin stood at 12.4% in the reporting quarter compared to 8.5% in Q2 of FY24. EBITDA is earnings before interest, tax, depreciation, and amortisation. The CNBC-TV18 poll had predicted a margin of 11.7% for the quarter under review.
In Q2, Hindalco's aluminium upstream segment achieved an EBITDA per tonne of $1,349, marking an 80% increase and industry-leading margins of 41%. The copper business set a record with EBITDA reaching ₹829 crore, up 27% YoY.
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Meanwhile, Novelis faced challenges due to the Sierre flood and tighter scrap spreads; excluding flood impacts, shipments increased by 4%, and EBITDA per tonne stood at $502. Hindalco maintained robust cash flow, keeping its net debt to EBITDA ratio below 1.2x.
In aluminium (India), upstream revenue rose by 16% to ₹9,125 crore, and EBITDA grew 79% to ₹3,709 crore, supported by reduced input costs, maintaining a 41% margin. Downstream revenue reached ₹3,161 crore, up 20%, with downstream sales at 103 KT, up 10%, though downstream EBITDA per tonne fell 11% to $179.
In copper (India), revenue grew 5% to ₹13,114 crore, with EBITDA reaching an all-time high of ₹829 crore, up 27%. Copper metal sales declined by 13% to 117 KT, and continuous cast rod sales dropped by 10% to 90 KT.
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For Novelis, shipments rose 1% to 945 KT, led by record beverage packaging shipments. Revenue climbed 5% to $4.3 billion, driven by higher aluminium prices. Adjusted EBITDA, however, declined by 5% to $462 million due to less favourable metal benefits, product-mix challenges, and a $25-million impact of the Sierre flood, which contributed to an 18% decline in net income to $128 million.
The Sierre flood incurred a total net cash impact of $80 million after insurance, affecting adjusted EBITDA by $30 million, of which $25 million was recorded this quarter.
The results came after the close of the market hours. Shares of Hindalco Industries Ltd ended at ₹654.50, up by ₹4.35, or 0.67%, on the BSE.
