Hindalco Industries reports 37% YoY drop in Q4 PAT, announces 300% dividend for FY23

Hindalco Industries Q4 results: Hindalco Industries – an Aditya Birla Group metal company – released better-than-estimated earnings for the January-March quarter of the financial year 2022-23 on Wednesday, May 24, 2023.

The aluminium producer reported a 37 per cent year-on-year (YoY) drop in consolidated net profit or profit after tax (PAT) at Rs 2,411 crore. However, on a sequential basis, the profit jumped 77 per cent.

Zee Business research analysts had estimated the Nifty company to post Rs 2,008 crore consolidated net profit during the quarter under review.

Meanwhile, the consolidated revenue of Hindalco stood at Rs 55,857 crore, which was unchanged on a YoY basis but was up 5 per cent sequentially, the company said in its earnings release.

The analysts had pegged the consolidated revenue of the aluminium maker to come in at Rs 52,309 crore for the final three months period of FY23.

Hindalco’s consolidated EBITDA (earnings before interest, taxes, depreciation and amortisation) – a measure of the company's overall financial performance – came in at Rs 5,818 crore, down 23 per cent YoY, and up 48 per cent QoQ. This was estimated at Rs 5,200 crore by Zee Business analysts.

Q4 earnings highlights

• All-time high quarterly Copper EBITDA at Rs 598 crore, up 55 per cent YoY, up 10 per cent QoQ.
• Novelis’ Adjusted EBITDA per ton at $431, down 1 per cent YoY, up 15 per cent QoQ.
• Novelis’ Net Income at $175 million, down 7 per cent YoY, up 82 per cent sequentially.
• Hindalco begins delivery of low-carbon aluminium to global customers

“Aluminium Downstream EBITDA for the year was at an all-time high of Rs 627 crore, up 64 per cent YoY, due to better pricing and volumes. Aluminium Upstream reported higher revenues for FY23 at Rs 33,010 crore, up 7 per cent due to higher metal volumes,” Hindalco said in its results filing.

Despite macroeconomic headwinds, Hindalco maintained a strong balance sheet and liquidity position which helped the company keep the Net Debt to EBITDA ratio below 2x, it said in the filing.

Satish Pai, Managing Director, Hindalco Industries, said, “A net-debt-free India business and a strong balance sheet will continue to power our ambitions for organic growth. We also continue to drive our holistic ESG approach with specific targets that go beyond carbon emissions, and encompass other planet-critical aspects like waste, biodiversity, water positivity, and community inclusion.”