13 February, 2024
ShareRobust performance by Aluminium and Copper
Consolidated PAT up 71% YoY
Consolidated EBITDA up 61% YoY
*As per US GAAP
Hindalco Industries Limited, the Aditya Birla Group metals flagship, reported a consolidated Net Profit of Rs. 2,331 crore, up 71% YoY in Q3 FY24, driven by a robust performance across aluminium and copper business segments. The Copper Business achieved a record quarterly EBITDA of Rs. 656 crore, a 20% rise YoY on the back of higher volumes and robust operations. Novelis reported an improvement of 33% YoY in Adjusted EBITDA and EBITDA per ton in Q3 FY24, driven primarily by favourable metal benefit from recycling and lower operating costs. In the Indian Aluminium segment, Upstream Business EBITDA for the quarter was Rs. 2,443 crore, up 54% YoY on account of lower input costs and continued strong operating performance. The Company maintained a strong balance sheet and liquidity with a consolidated Net Debt to EBITDA ratio well below 2x, positioning it well for organic growth.
Particulars | Q3 FY23 | Q2 FY24 | Q3 FY24 | 9M FY23 | 9M FY24 | |
---|---|---|---|---|---|---|
Revenue from Operations | 53,151 | 54,169 | 52,808 | 167,345 | 159,968 | |
Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA) | ||||||
Novelis* | 2,848 | 3,998 | 3,783 | 11,229 | 11,237 | |
Aluminium Upstream | 1,591 | 2,074 | 2,443 | 6,210 | 6,452 | |
Aluminium Downstream | 157 | 171 | 103 | 515 | 421 | |
Copper | 546 | 653 | 656 | 1,655 | 1,840 | |
Business Segment EBITDA | 5,142 | 6,896 | 6,985 | 19,609 | 19,950 | |
Inter Segment Profit/ (Loss) Elimination (Net) | 101 | (1) | (47) | 472 | (58) | |
Unallocable Income/ (Expense) - (Net) & GAAP Adjustments | (1313) | (799) | (616) | (1,768) | (1,365) | |
EBITDA | 3,930 | 6,096 | 6,322 | 18,313 | 18,527 | |
Finance Costs | 934 | 1,034 | 944 | 2,660 | 2,970 | |
PBDT | 2,996 | 5,062 | 5,378 | 15,653 | 15,557 | |
Depreciation & Amortisation (including impairment) | 1,784 | 1,864 | 2,051 | 5,299 | 5,705 | |
Share in Profit/ (Loss) in Equity Accounted Investments (Net of Tax) | 2 | - | 1 | 7 | 3 | |
Profit before Exceptional Items and Tax | 1,214 | 3,198 | 3,328 | 10,361 | 9,855 | |
Exceptional Income/ (Expenses) (Net) | - | 33 | - | 41 | 21 | |
Profit Before Tax (After Exceptional Item) | 1,214 | 3,231 | 3,328 | 10,402 | 9,876 | |
Tax | (148) | 1,035 | 997 | 2,716 | 2,895 | |
Profit/ (Loss) After Tax | 1,362 | 2,196 | 2,331 | 7,686 | 6,981 | |
EPS (Rs./share) | 6.13 | 9.88 | 10.50 | 34.57 | 31.43 | |
*As per US GAAP |
Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries, said, “We continue to stay on our growth track despite challenging market conditions, delivering a strong performance, driven by an enhanced product mix and lower input costs across our businesses.
The Copper Business registered a record EBITDA, up 20% YoY on the back of strong volume growth and robust operations. The Aluminium Upstream Business EBITDA rose 54% YoY, supported by stable operations and lower raw material costs, which keeps us positioned in the first quartile of the global cost curve. We continue to invest in promising growth areas both in aluminium and copper downstream. Our overseas business and global recycling leader Novelis showed 33% YoY improvement in EBITDA and EBITDA per ton, driven by favourable metal benefit from recycling, higher pricing, and lower operating costs.
Robust cash generation in India operations enables further deleveraging of our India business; Hindalco has pre-paid long-term loans of Rs. 4,370 crores during the year amid a high-interest rate scenario. On the ESG front, our first-of-its-kind energy transition initiative is on course to begin ramp-up of 100 MW of round-the-clock carbon-free power for our Odisha smelter, by Q4 of CY2024.”
Consolidated revenue for the third quarter stood at Rs. 52,808 crore (vs Rs. 53,151 crore in Q3 FY23), down 1% YoY. Hindalco reported an EBITDA of Rs. 6,322 crore in Q3 FY24 (vs Rs. 3,930 crore in Q3 FY23), up 61% YoY. Consolidated PAT in Q3 FY24 was Rs. 2,331 crore compared to Rs. 1,362 crore in Q3 FY23, up 71% YoY. Consolidated Net Debt to EBITDA stood at 1.43x as of 31 December, 2023 vs 1.6x as of 31 December, 2022.
Novelis
Total shipments of flat rolled products were at 910 Kt in Q3 FY24 vs 908 Kt in Q3 FY23, flat YoY. Novelis’ revenue stood at $3.9 billion (vs $4.2 billion), down 6% YoY, impacted by lower average aluminum prices. Novelis reported an adjusted EBITDA of $454 million (vs $341 million), up 33% YoY driven by favourable metal benefit from recycling, higher pricing, and lower operating costs. Novelis’ adjusted EBITDA per ton, at $499, was up 33% YoY.
Aluminium (India)
Upstream revenue was Rs. 7,971 crore in Q3 FY24 vs Rs. 8,046 crore in Q3 FY23. Aluminium Upstream EBITDA stood at Rs. 2,443 crore in Q3 FY24, compared to Rs. 1,591 crore in Q3 FY23, up 54% YoY driven by lower input costs. Upstream EBITDA margins were at 30.7% and continue to be one of the best in the global industry.
Downstream third quarter revenue was Rs. 2,547 crore vs Rs. 2,647 crore in Q3 FY23. Sales of Downstream Aluminium stood at 90 Kt vs 91 Kt in Q3 FY23, flat YoY. Downstream EBITDA was Rs. 103 crore in Q3 FY24 compared to Rs. 157 crore for Q3 FY23, down 34% YoY, majorly impacted by unfavourable product mix and lower realizations.
Copper
Revenue from the Copper Business stood at Rs. 11,954 crore, up 16% YoY, driven by higher sales volumes and prices. EBITDA for the Copper Business was at an all-time high of Rs. 656 crore in Q3 FY24 compared to Rs. 546 crore in Q3 FY23, up 20% YoY backed by higher shipments and robust operations. Copper metal sales were 119 Kt (vs 109 Kt). Copper Continuous Cast Rod (CCR) sales were at 93 Kt (vs 88 Kt), up 6% YoY supported by growing market demand for value-added products and increased utilization of our rod mills.