Hindalco reports consolidated first quarter FY2024 results

2023-08-21

Aug. 21, 2023 - Hindalco Industries Limited, the Aditya Birla Group metals flagship, reported a consolidated quarterly Net Profit of Rs.2,454 crore, a sequential growth of 2 per cent, driven by recovery in Novelis and Aluminium India Downstream Business, and backed by a steady performance by the Copper business.

Novelis reported a sequential improvement in quarterly Adjusted EBITDA and EBITDA per ton reflecting favourable product mix and record automotive shipments. Copper Business achieved highest-ever metal sales, at 118 Kt, up 1 per cent sequentially, supported by robust market demand.

Aluminium India Downstream EBITDA for the quarter was Rs.147 crore, up 31 per cent sequentially, due to enriched product mix. Aluminium Upstream reported higher quarterly shipments at 341 Kt, up by 5 per cent sequentially, driven mainly by higher demand in electrical and auto segments.

Despite macroeconomic headwinds, Hindalco maintained a strong balance sheet and liquidity position which helped the Company keep the Net Debt to EBITDA ratio below 2x.

Consolidated Financial Highlights for the Quarter ended June 30, 2023

Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries, said,

"FY24 has started on a promising note. Our focus on expanding our value-added portfolio and operational efficiencies has enabled us to deliver a sustained performance in the face of continued macroeconomic pressures. An enhanced product mix saw the Aluminium India Downstream Business generating higher value, with Q1 EBITDA increasing by 31 per cent QoQ. Despite significant market headwinds, Novelis continued to show sequential improvement in adjusted EBITDA and EBITDA per ton, backed by record sales of automotive aluminium sheets. The Copper Business achieved record metal sales and maintained its market share despite undergoing a planned shutdown.

We will continue to strongly position our Company for the future, by maintaining our focus on ESG, controlling costs, securitising resources, and driving downstream expansion."

Consolidated Results in Q1 FY24 (vs Q4 FY23)

Consolidated revenue for the first quarter stood at Rs.52,991 crore (vs Rs.55,857 crore in Q4 FY23), down 5 per cent QoQ, on account of unfavorable macros and subdued volumes.

Hindalco reported an EBITDA of Rs.6,109 crore in Q1 FY24 (vs Rs.5,818 crore in Q4 FY23), up 5 per cent QoQ, supported by recovery in Novelis and India Downstream Business.

Consolidated PAT in Q1 FY24 was Rs.2,454 crore compared to Rs.2,411 crore in Q4 FY23, up 2 per cent QoQ. Consolidated Net Debt to EBITDA stood at 1.73x as of June 30th, 2023 vs 1.39x as of March 31st, 2023.