Hindalco Industries Ltd, the Aditya Birla Group's metal flagship firm, on Friday reported a multifold jump in consolidated profit after tax (PAT) to Rs 3,417 crore for the quarter ended September 30.

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The results were driven by an exceptional performance by Novelis and India business, supported by favourable macros, strategic product mix, higher volumes and stability in operations.

 

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The company had posted a consolidated PAT of Rs 387 crore in the year-ago period, Hindalco Industries said in a filing to the BSE.

Its consolidated revenue from operations in July-September 2021 increased to Rs 47,665 crore as compared with Rs 31,237 crore in the year-ago period, the filing said.

In a statement, the company said, "Hindalco Industries...Reported its highest net profit in Q2 FY22, surpassing all previous quarterly performances. The company's consolidated PAT surged 783 per cent to Rs 3,417 crore, a multifold rise of nearly nine times y-o-y."

Novelis continued to report a high quarterly Ebitda, as a result of an upswing in demand for innovative and sustainable aluminium products, high recycled contents and outstanding operational performance, the statement said.

This is despite the challenges in the automotive segment due to the global semiconductor chip shortage, it added.

Hindalco Industries Managing Director Satish Pai said, "Our record-breaking performance this quarter is an affirmation of our fully integrated business model, which powers our performance in both upstream and downstream markets."

Pai added that Hindalco reported standout performances across all business segments.

"Indian aluminium business set a near-global industry record by achieving the Ebitda (earnings before interest, tax, depreciation and amortisation) margin of 42 per cent," he said.

The copper business delivered the highest-ever quarterly sales in the second quarter, with both smelters running optimally to meet the robust market demand. Novelis once again achieved a record Ebitda per tonne driven by higher volumes and favourable metal prices, he said.

"Our product-rich portfolio strategy continues to deliver results across diverse market scenarios. It encourages us to keep building the downstream asset base and expand our market footprint."

"The recent Ryker copper rod unit acquisition is in keeping with our downstream capex (capital expenditure) plans announced earlier this year. We also continue to push our ESG (environment, social and governance) agenda and goals to meet our sustainability vision on net neutrality, water positivity, zero discharge and more," he added.

The company said the record results were driven by an outstanding performance by Novelis as well as India business, supported by a sharp recovery in all relevant markets, and improved macros and higher volumes.