Hindalco net profit jumps 48% to an all-time high of Rs 4,119 crore — Street gives a thumb up

The company also posted an all-time high quarterly consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) — a measure of operating profitability — at Rs 8,640 crore, up 27 percent YoY.

According to the company's statement, the excellent results were driven by better macros, robust performance of aluminium downstream and copper businesses along with better operating efficiencies.

Copper EBITDA stood at a record high of Rs 565 crore, up 116 percent YoY from Rs 261 crore in the same quarter last year. A CNBC-TV18 poll of analysts had projected the copper EBITDA to come in at Rs 333 crore. Copper rod sales, meanwhile, reached an all-time high during the three-month period to 80,000 tonnes, up 73 percent YoY.

Aluminium upstream EBITDA was recorded at Rs 3,272 crore, up 41 percent compared to the same quarter a year ago while EBITDA margin came in at 38 percent. The firm posted aluminium downstream EBITDA at Rs 158 crore, up 305 percent YoY while EBITDA per tonne at $261, up 306 percent YoY, according to the company's statement.

Commenting on the result, Satish Pai, Managing Director, Hindalco Industries, said the company’s earnings for the June 2022 ended quarter were even stronger than the previous quarter, despite rising input costs and inflationary pressures.

“Our performance was backed by strong operational efficiencies and pre-emptive sourcing of critical raw material, thus ensuring stable operations and higher margins. Our business model supports our position as an integrated aluminium producer with one of the world’s best EBITDA margins,” he said in a statement.

Our product mix enhancement strategy is working well with the Aluminium Downstream EBITDA growing four-fold YoY. Novelis reported its highest ever EBITDA per ton driven by higher product pricing, favourable product mix and higher recycling benefits. Looking ahead, we remain focused on riding all market cycles with our greener, stronger, smarter approach.”