12 November, 2021
ShareIntegrated portfolio strategy supported by stable operations and strong macros delivers another record-breaking performance
Net profit at all-time high of ₹3,417 crore, up 8.8x
*As per US GAAP
Mumbai: Hindalco Industries Limited, the Aditya Birla Group metals flagship, reported its highest net profit in Q2 FY22, surpassing all previous quarterly performances. The company’s consolidated PAT surged 783 per cent to ₹3,417 crore, a multifold rise of nearly nine times YoY.
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. 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 an outstanding operational performance despite challenges in the automotive segment due to the global semiconductor chip shortage impacting the automotive industry.
Table: Consolidated Financial Highlights for the Quarter ended September 30, 2021
Particulars | Q2 FY21 | Q1 FY22 | Q2 FY22 | H1 FY21 | H1 FY22 |
---|---|---|---|---|---|
Revenue from Operations | 31,237 | 41,398 | 47,665 | 56,520 | 89,023 |
Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) | |||||
Novelis* | 3,392 | 4,090 | 4,100 | 5,311 | 8,190 |
Aluminium | 1,188 | 2,352 | 3,247 | 2,161 | 5,599 |
Copper | 242 | 261 | 352 | 307 | 613 |
All Other Segments | 6 | (6) | 3 | 7 | (3) |
Business EBITDA | 4,828 | 6,697 | 7,702 | 7,786 | 14,399 |
Unallocable Income/ (Expense) - (Net) & GAAP Adjustments | 343 | 93 | 346 | (256) | 439 |
EBITDA | 5,171 | 6,790 | 8,048 | 7,530 | 14,838 |
Finance Costs | 982 | 820 | 1,291 | 1,974 | 2,111 |
PBDT | 4,189 | 5,970 | 6,757 | 5,556 | 12,727 |
Depreciation & Amortisation (including impairment) | 1,838 | 1,649 | 1,735 | 3389 | 3,384 |
Share in Profit/ (Loss) in Equity Accounted Investments (Net of Tax) | - | 2 | - | 3 | 2 |
PBT before Exceptional Items and Tax | 2,351 | 4,323 | 5,002 | 2,170 | 9,345 |
Exceptional Income/ (Expenses) (Net) | 71 | 230 | 20 | (248) | 250 |
Profit Before Tax (After Exceptional Item) | 2,422 | 4,553 | 5,042 | 1,822 | 9,595 |
Tax | 637 | 1,299 | 1,615 | 606 | 2,914 |
Profit/ (Loss) from Continuing Operations | 1,785 | 3,254 | 3,427 | 1,216 | 6,681 |
Profit/ (Loss) from Discontinued Operations | (1,398) | (467) | (10) | (1,538) | (477) |
Profit/ (Loss) After Tax | 387 | 2,787 | 3,417 | (322) | 6,204 |
EP S(₹/share) | 1.7 | 12.5 | 15.4 | (1.4) | 27.9 |
*As per US GAAP |
# Exceptional Income / (Expenses) for Q1FY22, exclude ₹346 crore (net of litigation cost of ₹9 crore) which represents the principal portion on PIS and COFINS related tax credit income as it is included in the Novelis segment result.
Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries, 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. Hindalco reported standout performances across all business segments: Indian Aluminium Business set a near global industry record by achieving EBITDA margin of 42 per cent. Copper Business delivered the highest-ever quarterly sales in Q2, 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.
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 plans announced earlier this year. We also continue to push our ESG agenda and goals to meet our sustainability vision on net neutrality, water positivity, zero discharge and more.”
Novelis recorded quarterly adjusted EBITDA of $553 million (vs $455 million), up 22 per cent YoY, on the back of higher volumes, favourable product mix and metal benefits. Novelis achieved an Adjusted EBITDA per tonne of $571 in Q2 FY22, compared to $493 in the prior year, an increase of 16 per cent YoY.
Novelis’ Net Income (excluding tax-effected special items) was $244 million, up 54 per cent YoY, driven by higher Adjusted EBITDA. Revenue was $4.1 billion (vs $3.0 billion), up 38 per cent YoY, due to higher shipments, global aluminium prices and market premiums. Total shipments of flat rolled products (FRPs) were at 968 Kt (vs 923 Kt), up 5 per cent YoY, with strong demand across end-product markets particularly beverage packaging and specialty products, partially offset by continued headwinds in the automotive industry on account of the semiconductor chip shortage.
EBITDA was at an all-time high of ₹3,247 crore in Q2 FY22, compared with ₹1,188 crore for Q2 FY21, an increase of 173 per cent YoY, primarily due to favourable macros, improved product mix, higher volumes and better operational efficiencies. EBITDA margins reached more than a decade high of 42 per cent and continue to be among the best in the industry. Revenue was ₹7,812 crore in Q2 FY22 vs ₹4,796 crore in the prior year period. Aluminium India Business recorded metal production of 322 Kt vs 307 Kt in the corresponding quarter. Aluminium metal sales were up 12 per cent YoY at 338 Kt vs 303 Kt in the prior year. Aluminium VAP (excluding wire rods) sales volumes were at 86 Kt (vs 63 Kt), up 36 per cent YoY, driven by a sharp recovery in the domestic market. VAP sales, as a percentage of total metal sales, were 25 per cent this quarter vs 21 per cent in the same quarter last year, in line with market recovery.
Both smelters ran optimally during the monsoon quarter. Copper Cathode production was at 100 Kt in Q2 FY22 (vs 73 Kt in Q2 FY21), higher by 38 per cent YoY. While overall copper metal sales were at 110 Kt (vs 75 Kt in Q2 FY21), Copper Continuous Cast Rod (CCR) sales in Q2 FY21 were up 10 per cent YoY, at 70 Kt (vs 64 Kt in Q2 FY21), driven by market recovery. EBITDA for the Business stood at ₹352 crore compared to ₹242 crore in Q2 FY21, up 45 per cent YoY on the back of higher volumes, better operational efficiencies and improved by-product realisations. Revenue from the Copper Business was ₹9,587 crore this quarter, up 101 per cent YoY, primarily due to higher global prices of copper.
Hindalco reported another record quarterly financial performance in Q2 FY22 with EBITDA at ₹8,048 crore (vs ₹5,171 crore), up 56 per cent YoY. 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. Consolidated Revenue for the second quarter stood at ₹47,665 crore (vs ₹31,237 crore), up 53 per cent YoY. Consolidated PAT in Q2 FY22 rose to ₹3,417 crore from ₹387 crore in Q2 FY21, a jump of 783 per cent YoY. Consolidated Net Debt to EBITDA ratio improved further to 1.93x on September 30, 2021 compared to 2.59x on March 31, 2021.
Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group. An $18 billion metals powerhouse, Hindalco is the world’s largest aluminium company by revenues, and a major player in copper. It is also one of Asia’s largest producers of primary aluminium.
Guided by its purpose of building a greener, stronger, smarter world, Hindalco provides innovative solutions for a sustainable planet. Its wholly-owned subsidiary Novelis Inc. is the world’s largest producer of aluminium beverage can stock and the largest recycler of used beverage cans (UBCs).
Hindalco’s copper facility in India comprises a world-class copper smelter, downstream facilities, and a captive jetty. The copper smelter is among the world’s largest custom smelters at a single location. Hindalco’s global footprint spans 48 manufacturing units across 10 countries.
Registered Office:
Ahura Centre,
1st Floor, B Wing,
Mahakali Caves Road Andheri (East),
Mumbai 400 093
Website: www.hindalco.com; E mail: hindalco@adityabirla.com;
Corporate Identity No. L27020MH1958PLC011238
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