Hindalco profit jumps 9x to record high on low base, Novelis' showing

On a sequential basis, the company's net profit increased 23 per cent in the period under review on the back of increased revenues

Hindalco Industries reported an all-time high consolidated net profit of Rs 3,417 crore in the September quarter, up nearly ninefold from the corresponding period last year, primarily because of a low base.

On a year-on-year basis, the jump was 783 per cent from Rs 387 crore garnered last year. On a sequential basis, the company’s net profit increased 23 per cent on the back of increased revenue.

Its results were driven by an exceptional performance by Novelis and India business, supported by favorable macros, strategic product mix, higher volumes, and stability in operations, said the company.

The Aditya Birla group company’s topline stood at Rs 47,665 crore in the September quarter, up 53 per cent from the same period last year and 15 per cent sequentially, led by a strong performance from Novelis.

During the period under review, the revenue from Novelis was the highest at Rs 30,512 crore, followed by the copper business at Rs 9,587 crore and the domestic aluminium business at Rs 7,812 crore.

According to Bloomberg estimates, the company’s topline was expected to be at Rs 44,424 crore, while the bottomline was seen at Rs 2,778 crore.

The company's consolidated earnings before interest, taxes, depreciation, and ammortisation (Ebitda), too, was at an all-time high of Rs 8,048 crore, up 56 per cent year-on-year and 19 per cent sequentially.

Its consolidated net debt to Ebitda improved further to 1.93x as of September 30, 2021, as against 2.59x as of March 31, 2021.

Novelis reported quarterly adjusted Ebitda at $553 million, up 22 per cent year-on-year; Novelis’ quarterly adjusted Ebitda a tone came in at $571, up 16 per cent year-on-year.

Novelis reported high quarterly Ebitda due to an upswing in demand for innovative and sustainable aluminium products, high recycled contents, and an outstanding operational performance despite challenges in the automotive segment as global semiconductor chip shortage impacted the automotive industry, it said.

The aluminium producer reported an all-time high quarterly India Business Ebitda at Rs 3,715 crore, up 152 per cent year-on-year and up 48 per cent sequentially.

Also, its all-time high quarterly aluminium India Ebitda stood at Rs 3,247 crore, up 173 per cent over the year-ago figure and 38 per cent quarter-on-quarter. Its Ebitda margin of 42 per cent was highest in more than a decade, said a Hindalco release.