Hindalco Industries reports highest-ever quarterly net profit of Rs 3,851 crore

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Coming to Novelis Inc, a subsidiary of Hindalco Industries, the company reported quarterly adjusted EBITDA of $431 million (vs $505 million), down 15 percent YoY, primarily due to cost inflation, semiconductor chip shortage in automotive and other short-term operational issues, and a non-recurring regulatory provision taken in the quarter. Novelis reported an adjusted EBITDA per tonne of $437 in Q4 FY22, compared to $514 in the prior year.

Novelis' net income from continuing operations was $217 million, up 21 percent YoY, mainly driven by lower interest expense in Q4 FY22. Revenue was $4.8 billion (vs $3.6 billion), up 34 percent YoY, driven by higher global aluminium prices.

The company's EBITDA was at an all-time high of Rs 4,050 crore in Q4FY22, compared with Rs 1,819 crore for Q4FY21, an increase of 123 percent YoY, primarily due to favourable macros, higher volumes, better operational efficiencies, and improved performance of downstream business offset by higher input costs.

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The EBITDA margins were at 41 percent and continue to be the best in the industry. Revenue was Rs 9,847 crore in Q4FY22 vs Rs 5,969 crore in the prior-year period.

The EBITDA for the business stood at Rs 387 crore in Q4FY22 compared to Rs 322 crore in Q4FY21, up 20 percent YoY, on the back of better operational efficiencies and improved by-product realisations.

Revenue from the copper business was Rs 9,787 crore this quarter and improved by-product realisations. Revenue from the copper business was Rs 9,787 crore this quarter, up 15 percent YoY, primarily due to higher global prices of copper and higher volumes.

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Satish Pai, managing director of Hindalco Industries, said, "With record profitability in the fourth quarter, we had a very good end to the year. We attribute Hindalco’s highest-ever profits not just to strong macros, but also our consistent focus on operational excellence and cost optimization."

"We continue to remain one of the world’s lowest-cost and highest EBITDA margin producers of aluminium. Our strategy to build a more sustainable business model that is isolated from metal cycles is working very well for us. In line with this, we have allocated over 70% of our growth capex to value-enhancing downstream segments. All our growth capex for the next five years will be funded out of internal accruals," he said.

The results came after the close of the market hours. Shares of Hindalco Industries ended at Rs 407.75, up by Rs 10.90, or 2.75 percent on the BSE.