Hindalco Industries Q2 net falls 35% to Rs 2,205 cr on elevated input costs

Hindalco Industries Ltd on Friday reported 35.4 per cent decline in consolidated profit after tax at Rs 2,205 crore for the quarter ended September mainly due to elevated input costs.

The company, part of the Aditya Birla Group, had posted a consolidated profit after tax of Rs 3,417 crore in the year-ago period, Hindalco Industries said in a filing to BSE.

However, the consolidated revenue from operations in the second quarter of the current fiscal increased to Rs 56,176 crore from Rs 47,665 crore in the year-ago period.

"Hindalco Industries... reported consolidated revenue of Rs 56,176 crore in Q2 FY23, an increase of 18 per cent Y-o-Y, driven by higher volumes and better realisations," the company said in a statement.

The company reported an EBITDA of Rs 5,743 crore in the second quarter, down 29 per cent compared to the year-ago period, impacted by rising input costs and unfavourable macros. This was partially offset by better operational performance of copper and downstream businesses.

EBITDA refers to Earnings Before Interest, Taxes, Depreciation and Amortisation.

The company's Managing Director Satish Pai said that over the years, it has transitioned to a resilient and integrated business model which supports performance and profitability even when times are challenging.

Despite a surge in input costs, the company produced the highest-ever aluminium metal volumes.

While the upstream aluminium business EBITDA was impacted due to elevated raw material and energy costs, the company's aluminium downstream business performed well with EBITDA more than doubling Y-o-Y due to better pricing and market demand.

The copper business outperformed, reporting its highest ever metal and copper rod sales, Pai said.