Hindalco Q1 results: Net profit falls 40% to Rs 2,454 crore, margin shrinks to 10.8%

Aditya Birla group metal company Hindalco Industries reported a consolidated net profit of Rs 2,454 crore on Tuesday, translating to a fall of 40.4 per cent compared with the corresponding period a year ago. 

Its revenue came in at Rs 52,991 crore for the first quarter of the current financial year as against Rs 58,018 crore for the year-ago period, according to a regulatory filing. 

The company's margin — a key measure of profitability — contracted to 10.8 per cent from 14.5 per cent a year ago. 

According to Zee Business research, Mumbai-based Hindalco's quarterly net profit was estimated at Rs 2,190 crore, revenue at Rs 53,263 crore and margin at 10 per cent.

The company registered Rs 6,109 crore in earnings before interest, taxes, depreciation and ammortisation (EBITDA), aided by a recovery in Novelis and its India downstream business, according to a statement.

“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 tonne, backed by record sales of automotive aluminum sheets," said Satish Pai, Managing Director, Hindalco Industries.

He also said that the company's copper unit 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," he added.

Hindalco said Novelis reported a sequential improvement in quarterly adjusted EBITDA and EBITDA per tonne, reflecting a favourable product mix and record automotive shipments. The adjusted EBITDA per tonne of Novelis stood at $479 for the quarter ended June 2023, as against $583 for the quarter ended June 2022. 

The company's copper unit clocked record metal sales of 118 Kt. 

Hindalco shares remained under pressure after the earnings announcement, falling by as much as Rs 9.9 or 2.1 per cent to Rs 454.9 apiece on BSE. 

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