Hindalco Q3FY22 Results: Net profit doubles in December quarter, revenue up 44% YoY

Aditya Birla Group-backed Hindalco Industries Ltd on Thursday reported strong third quarter results for the financial year 2021-22 (Q3FY22). The company’s Q3 profit almost doubled driven by positive macros and focus on downstream value-added products along with better operating efficiencies. 

Hindalco posted nearly 96 per cent jump in consolidated profit after tax (PAT) to Rs 3,675 crore for the quarter ended December 31, 2021, as against Rs 1,877 crore in the year-ago quarter.  

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While its consolidated revenue from operations during October-December quarter of FY22 increased by 44 per cent to Rs 50,272 crore from Rs 34,958 crore in the year-ago period, the company said.  

It added, the consolidated EBITDA (earnings before interest, tax, depreciation and amortization) at Rs 7,624 crore, up 38 per cent year-on-year. The company said that it reported its highest net profit in Q3FY22, surpassing all previous quarterly performances.  

“The results were driven by a consistent performance by Novelis and an exceptional performance by India business, supported by favourable macros, strategic product mix and improved performance by the downstream business,” the company’s release mentioned. 

"Novelis continued to report consistent quarterly EBITDA despite challenges in the automotive segment due to the global semiconductor chip shortage, unplanned production downtime in South America and supply chain bottlenecks in Asia," Hindalco further added. 

According to its results highlights, “Hindalco acquires Hydro’s high-end extrusions facility at Kuppam, Andhra Pradesh and has retained a position as the world’s most sustainable aluminium company in DJSI 2021.” 

Hindalco Industries Managing Director Satish Pai said, "Our sustained performance and strong balance sheet are driving our plans for further organic capex (capital expenditure). We have already announced over Rs 3,000 crore investments in our downstream pipeline Hirakud and Silvassa, and the acquisitions of Ryker and Hydro's Kuppam units." 

Novelis has also announced capital projects that align market growth with sustainability considerations, Pai said, adding further that the company expects a surge in demand for aluminium and copper and is well-positioned to serve the market.