Hindalco Industries Q4 preview: Strong Q4 show expected; margins likely to climb 240 bps

Hindalco Industries, led by Kumar Managalam Birla, is scheduled to report its Q4 earnings on May 24 (Friday). Zee Business research analysts expect the country’s largest aluminium and copper producer to report strong March quarter earnings.

The consolidated PAT for January-March quarter is seen edging higher by 14 per cent on-year to Rs 2,745 crore as against Rs 2,411 crore in Q4FY23. Revenue from operations at the company is estimated to decline by 2 per cent on-year and come in at Rs 54,655 crore versus Rs 55,857 crore in the corresponding period of the previous fiscal.

EBITDA, or earnings before interest, taxes, depreciation, and amortization, representative of the cash profit generated by the company's operations, is expected to log a healthy growth of 22 per cent on-year to Rs 6,497 crore. In the same period last year, the company’s EBITDA was reported at Rs 5,327 crore. The operating profitability at the concern is seen to increase on the back of reduction in costs.

The margins at the metal company are also seen to log an improvement year-on-year (YoY) on the back of lower coal costs. For the reporting quarter, the company’s margins are expected at 11.9 per cent versus 9.5 per cent in the same period last year.

Nevertheless, sales of copper and aluminium is expected to remain steady on-year.

The company’s US-based subsidiary Novelis also reported a good performance operationally. For the March quarter, the company’s net profit increased 6 per cent YoY. 

Hindalco share price performance

In line with the healthy gains in the larger metal pack, Hindalco shares climbed by 64.5 per cent in the last one year.