Hindalco Q1 profit jumps 25% to ₹3,074 cr

Net profit of Aditya Birla Group’s metals flagship Hindalco Ltd rose 25% year-on-year to ₹3,074 crore for the quarter ended June. Profit growth was aided by favourable macros, operational efficiencies and lower input costs.

The aluminium producer’s revenue from operations increased 7.6% year-on-year to ₹57,013 crore during the first quarter from ₹52,999 crore in the corresponding quarter a year ago.

Consolidated operating profit or earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 31% year-on-year to ₹7,992 crore. The company’s aluminium upstream EBITDA per tonne was at $1,273, up 84%, with margins of 40%. Aluminium upstream EBITDA soared 81% to ₹3,493 crore.

Hindalco’s Copper business delivered a new record-breaking performance in Q1, with EBITDA at an all-time high of ₹805 crore, up 52% YoY, backed by higher average copper prices.

Hindalco subsidiary Novelis Inc., the world’s largest aluminum rolling and recycling company, reported a strong first quarter performance with EBITDA per tonne at $525, an increase of 10% compared to the same quarter last year.

First quarter results ride on the back of consistent cost optimisation which allowed us to leverage the higher average metal prices, says Satish Pai, managing director, Hindalco Industries.

“The Copper business achieved its highest quarterly EBITDA driven by high domestic sales (especially downstream products), healthy by-product credits and better operational efficiencies following a successful planned shutdown. The Aluminium India Upstream business recorded an 81% growth in EBITDA over the previous year. At 40%, it has registered the highest EBITDA margins globally,” says Pai.

Novelis’ total shipments of flat rolled products were at 951 kilo tonne in Q1 FY25 versus 879 KT in Q1 FY24, up 8% supported by normalised demand for beverage packaging sheet. Novelis’ revenue in Q1 FY25 stood at $4.2 billion (vs $4.1 billion), up 2% YoY, driven by higher average aluminium prices YoY and higher shipments.

Novelis’ EBITDA per tonne at $525, was primarily due to increased volumes led by normalised beverage can shipments, says Pai. “Looking ahead, the major capital formation phase of the downstream business is near completion, and from here on, we will explore growth opportunities in the upstream business given our strong cash position,” Pai adds. Hindalco bought Novelis for $6 billion in 2007.

In the domestic aluminium business, quarterly upstream revenue was ₹8,839 crore in Q1 FY25 compared with ₹8,064 crore in the prior year. Downstream revenue was ₹2,868 crore in Q1 FY25 as against ₹2,435 crore in the prior year period.

Quarterly revenue from the Copper Business stood at ₹13,292 crore, up 16% YoY, on account of higher shipments and realisation. The company’s net debt to EBITDA ratio was below 1.5x.