Hindalco Industries Q4 results: Net profit rises 31.6% to Rs 3,174 crore

Metal maker Hindalco Industries reported a 31.6 per cent rise in its consolidated profit for the quarter ended March 31, 2024 (Q4FY24), due to lower costs and better realisations. Top executives from the company also said Hindalco will scout for critical mineral mines in India.

For the quarter under review, Hindalco reported a net profit of Rs 3,174 crore, up 31.6 per cent from a year ago. The rise in profit, the company said, was driven by a robust performance and improved margins across all business segments. Revenue in the same period was flat at Rs 55,994 crore, from Rs 55,857 crore a year ago.

Hindalco beat street estimates, as in a Bloomberg poll, 11 analysts estimated a revenue of Rs 53,959 crore and 12 analysts estimated a net income adjusted of Rs 2,799 crore.

Sequentially, Hindalco’s net profit grew 36.2 per cent and revenue grew 6 per cent.

Ebitda for the quarter, the company said, was Rs 7,201 crore, up 24 per cent Y-o-Y, driven by lower input costs and higher volumes. Ebitda is earnings before interest, taxation, depreciation and amortisation.

In a media call post-results, Satish Pai, managing director of the company, also said Hindalco has won a copper mine in the recent round of critical minerals auctions. He further noted that the company is in the process of participating in two other mines – of nickel and cobalt, in Maharashtra and Karnataka. The top executive added that the company will focus on critical mineral assets in India and not scout for assets outside the country. Hindalco also participated in a lithium mine auction but did not win in the last round, Pai said.

Commenting on the company’s strategy for captive coal mines, Pai said Hindalco will not bid for any new coal mines. The new strategy, he said, reflects Hindalco’s plans to power all new capacities with green power.

Hindalco, for the full year ending March 31, 2024, has repaid loans worth Rs 5,195 crore. For the current financial year, the company plans to spend close to Rs 6,000 crore as capital expenditure in India, fully funded through internal accruals.

Hindalco is in the process of undertaking a public listing for its wholly-owned subsidiary Novelis in the US public market. All proceeds from the offer for sale will accrue to Hindalco as the sole promoter. Hindalco’s management in Friday’s call, however, did not respond to any queries on the rationale or deployment of the IPO proceeds, stating an IPO-related silent period.

Segment-wise, the company said its copper business delivered an all-time high Ebitda of Rs 776 crore, up 30 per cent year-on-year (Y-o-Y), backed by record sales. The company also added that the copper business has grown to become the second largest in the world for copper rods, excluding China. It achieved its best-ever performance with sales crossing 5 lakh tonnes for the first time.

In his guidance for the current financial year, Pai said he expects demand for aluminium and copper to remain robust and anticipates a good year, provided there are no major monsoon-related disruptions.

First Published: May 24 2024 | 6:48 PM IST