Hindalco Industries Ltd on Tuesday reported a strong double-digit growth in net profit for the third quarter ended December, led by robust operational performance on easing costs and better realisations. The Aditya Birla Group company's profit jumped 68% year-on-year (YoY) to ₹838 crore, driven by a robust performance across aluminium and copper business segments. The same was ₹498 crore in the year-ago period.
The aluminium producer reported a 7% YoY growth in revenue for the quarter to ₹20,289 crore, compared to ₹18,983 crore in the corresponding quarter of last year.
Earnings before interest, taxes, depreciation and amortisation or EBITDA grew by 46% YoY to ₹1,963 crore, and margin expanded by 260 basis points to 9.7%.
On Monday, Novelis reported a strong 33% YoY growth in operating profit, which drove the profit multifold. The company posted a net income of $121 million for the quarter, compared to $12 million a year ago.
The strong operational performance was driven by favorable metal benefit from recycling, higher pricing, and lower operating costs compared to last year. However, revenue dropped by 6% YoY due to lower aluminium prices and flat volumes.
Hindalco has re-appointed Satish Pai as the Managing Director from August 1, 2024, to December 31, 2027.
"We continue to stay on our growth track despite challenging market conditions, delivering a strong performance, driven by an enhanced product mix and lower input costs across our businesses," said Satish Pai, Managing Director, Hindalco Industries.
The Copper Business registered a record EBITDA, up 20% YoY on the back of strong volume growth and robust operations. The Aluminium Upstream Business EBITDA rose 54% YoY, supported by stable operations and lower raw material costs, which keeps the company positioned in the first quartile of the global cost curve, Pai said.
"We continue to invest in promising growth areas both in aluminium and copper downstream. Our overseas business and global recycling leader Novelis showed 33% YoY improvement in EBITDA and EBITDA per ton, driven by favourable metal benefit from recycling, higher pricing, and lower operating costs," he added.
Hindalco's India business has prepaid long-term debt of ₹4,370 crore during the year amid a high-interest rate scenario.
Shares of Hindalco Industries Ltd were trading 12.30% lower at ₹510.80 apiece on the NSE today. The stock has tumbled over 16% so far this year.
First Published: Feb 13, 2024 2:19 PM IST
