Hindalco posts PAT of INR 3,417 crore in Q2

The subsidiary of Aditya Birla Group, Hindalco Industries revealed an upsurge of 783% in consolidated net profit to INR 3,417 crore in Q2 FY22 from INR 387 crore in Q2 FY21.

Hindalco’s consolidated revenue for Q2 stood at INR 47,665 crore as against INR 31,237 crore in the same phase last year, denoting a rise by 53% Y-o-Y. The Q2 FY22 report unveils EBITDA was INR 8,048 crore, a jump by 56% from INR 5,171 crore in Q2 FY21. However, the consolidated net debt to EBITDA ratio enhanced further to 1.93x on 30 September 2021 compared to 2.59x on 31 March 2021.

Hindalco commented by saying: “The results were driven by an exceptional performance by Novelis and India Business, supported by favourable macros, strategic product mix, higher volumes, and stability in operations.”

The world leader in aluminium rolling and recycling, Novelis posted quarterly adjusted EBITDA of $553 million, an upswing by 22% Y-o-Y, driving on the shoulder of higher volumes, favourable product mix and metal benefits.

Novelis attained an adjusted EBITDA per ton of $571 in Q2 FY22, compared to $493 in the previous year, a growth of 16% Y-o-Y.

Hindalco reported revenue of $4.1 billion, an escalation of 38% Y-o-Y, entitled to a rise in shipments, the surge in global aluminium prices and market premiums. The total shipments of flat-rolled products (FRPs) were recorded at 968 Kt, soared by 5% Y-o-Y, due to the robust demand across end-product markets especially beverage packaging and speciality products, moderately offset by pursued blows in the automobile sector on account of the semiconductor chip shortfall.

The company's Indian aluminium business EBITDA was towering at its best of INR 3,247 crore in Q2 FY22, compared to INR 1,188 crore for Q2 FY21, a shoot up by 173% Y-o-Y, majorly due to favourable macros, upgraded product mix, higher volumes and better operational efficiencies. EBITDA margins attained more than a decade high of 42% and pursued to be among the best in the industry, while revenue was INR 7,812 crore in Q2 FY22 as against INR 4,796 crore in the previous year period.

Metal production of the Indian aluminium business documented production of 322 Kt as against 307 Kt in the corresponding quarter. The sales of aluminium were enhanced by 12% YoY at 338 Kt as against 303 Kt in the existing year.

Satish Pai, Managing Director of Hindalco Industries, said: “Our record-breaking performance this quarter is an affirmation of our fully integrated business model, which powers our performance in both upstream and downstream markets.”

“Our product-rich portfolio strategy continues to deliver results across diverse market scenarios. The recent Ryker copper rod unit acquisition is in keeping with our downstream CAPEX plans announced earlier this year."