Hindalco Industries Reports Robust Q2 Results with 78% Surge in Net Profit Hindalco reported quarterly consolidated EBITDA at INR 9,100 crore, up 49 per cent
You're reading BIZ Experiences India, an international franchise of BIZ Experiences Media.
Hindalco Industries Limited, the Aditya Birla Group's flagship metals company, announced the second-quarter performance for FY2024, posting a consolidated net profit of INR 3,909 crore—a 78 per cent year-on-year increase, as per a regulatory filing. The results were primarily driven by the robust performance of its India business, favourable market conditions, and prudent cost management, solidifying Hindalco's stronghold in the metals sector.
A highlight of the quarter was Hindalco's Aluminium Upstream division, which achieved an EBITDA (earnings before interest, taxes, depreciation, and amortization) per tonne of $1,349, marking an 80 per cent increase. The division also boasted margins of 41 per cent showcasing Hindalco's operational efficiency in a competitive market. Meanwhile, the copper business delivered an all-time high quarterly EBITDA of INR 829 crore, a 27 per cent jump from the previous year.
Despite facing external challenges, including a flood at its Sierre plant in Switzerland that affected Novelis, Hindalco's global subsidiary, the company demonstrated resilience. Novelis reported a 4 per cent rise in shipments (excluding the impact of the Sierre flood), with an EBITDA per tonne of $502, bolstered by record beverage packaging shipments.
Satish Pai, managing director of Hindalco, attributed the company's performance to its commitment to operational reliability and effective cost management. "Our Aluminium India Upstream business achieved its highest EBITDA per tonne in ten quarters, while the copper business continued its record-breaking streak. Our global footprint allowed us to partially mitigate the effects of the Sierre flooding, showcasing our operational resilience. Furthermore, our strong cash flow has enabled us to maintain a net debt-to-EBITDA ratio below 1.2x," Pai remarked.
With quarterly consolidated EBITDA at INR 9,100 crore, up 49 per cent, Hindalco continues to generate substantial cash flow and maintains a stable net debt-to-EBITDA ratio of 1.19x as of September 2024.
