Hindalco Industries Q3 Preview: Firm likely to post strong numbers; aluminium business to see good growth

Hindalco Industries share price, Hindalco Industries Q3 Results: Hindalco Industries, one of India's leading aluminium and copper manufacturing companies and the flagship entity of the Aditya Birla Group, is set to declare its financial results for the quarter ended December 31, 2023, on Tuesday, February 13.

The company's shares nosedived in the early trade today as Street was disappointed with its subsidiary Novelis' update on the Bay Minette Plant. 

CLSA, in its note, said that the cost and time overrun of its green-field Bay Minette project would be an overhang. Besides, achieving a double-digit internal rate of return or IRR (revised down from mid-teens earlier) will also be a tough task, the brokerage added.

At 11:19 am, the stock was trading 13.03 per cent lower at Rs 506.45 on the BSE. 

The mining giant, according to Zee Business Research, will see a jump of 78 per cent year-on-year (YoY) in its consolidated net profit, or profit after tax (PAT), at Rs 2,418 crore against Rs 1,360 crore logged in the corresponding quarter of the previous fiscal. However, revenue is seen falling 1 per cent to Rs 52,673 crore, while EBITDA, or earnings before interest, taxes, depreciation, and amortisation, is expected to surge 58 per cent YoY to Rs 5,615 crore. Margins are expected to come in at 10.7 per cent against 7 per cent registered in the year-ago period.

Segment-wise, the company's aluminium business is expected to put up a good show, while the copper segment may report a muted performance due to the shutdown.

Hindalco Industries' share price

In a year, shares of the company have underperformed the benchmark index. The stock has gained nearly 18 per cent against the Nifty50's rise of over 22 per cent during the window.