Hindalco Q4 Results: Standalone EBITDA jumps 35%, margins expand

Hindalco Industries Ltd., the Aditya Birla Group company, reported results for the January-March quarter, on Tuesday, May 20.

On a standalone basis, the company's net profit went up by ₹1,561 crore from ₹1,412 crore during the same quarter last year.

Revenue for the quarter increased by 13.4% from the year-ago period to ₹25,116 crore.

Hindalco's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 35.5% from last year to ₹3,008 crore, while margins expanded to 11.98% from 10.03% last year.

The company's Aluminium business upstream EBITDA grew by 78% year-on-year to ₹4,838 crore, while the downstream business EBITDA grew by 52% from last year to ₹219 crore.

EBITDA for the Copper business though, declined by nearly 21% from the year-ago quarter to ₹614 crore.

There has been a net debt reduction from Hindalco during the quarter. At the end of March, Hindalco's net debt stood at ₹35,332 crore, compared to ₹41,818 crore during the December quarter. However, the figure is higher than the ₹31,536 crore during the same quarter last year.

Additionally, Hindalco has also approved the acquisition of 100% stake in EMMRL, the lease holder of the Bandha coal block.

The rationale behind the move has been cited as the need to double down on its upstream capacities. The acquisition also meets Hindalco's objective of securing resources for its aluminium smelters.

Bandha coal block has resources of nearly 197 million tonnes mineable reserves. The acquisition will be done for a sum of ₹48 lakh along with a net debt of ₹1,131 crore.

Shares of Hindalco are trading 0.5% higher on Tuesday at ₹661, after the results announcement.