Hindalco Industries Q4 consol PAT triples to Rs 1,928 cr on robust revenue

Company's net debt/EBITDA ratio at pre-acquisition levels of Aleris

Hindalco Industries, the country’s leading aluminium producer, reported a higher-than-expected consolidated net profit attributable to the owners of the company at Rs 1,928 crore in the March quarter. The botton line was up a staggering 189 per cent, over the corresponding figure in the year-ago period, on the back of increased revenue.

The company had reported a bottomline of Rs 669 crore in the corresponding period last year. The company’s reported bottomline for the March quarter was strong despite increased tax expenses of total Rs 1,309, almost double from last year.

The Aditya Birla Group company’s topline in the period under review stood at Rs 40,507 crore, up 38 per cent from same period last year with Novelis (including Aleris) contributing the highest among segment contributors.

As per Bloomberg estimates, the company’s net sales was expected to be at Rs 34,106 crore, while its bottomline was seen at Rs 1,847 crore in the final quarter of FY21.

In segmentwise revenue, Novelis contributed the highest followed by copper at Rs 26,578 crore and Rs 8,508 crore respectively. Aluminium revenue stood at Rs 5,969 crore in the March quarter, marginally up from same period last year.

Meanwhile, the company’s consolidated earnings before interest, taxes, depreciation and ammortisation (EBITDA) stood at Rs 5,597 crore, up 33 per cent year on year and up 7 per cent sequentially.

Alongside, the company’s aluminium India business EBITDA was at an all-time high at Rs 1,610 crore, up 54 percent year-on-year.

Globally, Novelis adjusted EBITDA at $505 million was an all-time high, up 32 percent year-on-year on the back of higher organic volume, favourable metal benefits, and a $60 million EBITDA contribution from the acquired Aleris business.

In FY21, the company's gross debt declined by Rs 18,187 crore, while net debt fell by Rs 14,883 crore as of March 31, 2021from its peak on June 30, 2020.

“Our record Q4 results have strengthened our balance sheet even further, absorbing the Aleris acquisition and restoring consolidated net debt to EBITDA ratio to pre-acquisition levels. The Aleris business continues to positively impact the overall top line and EBITDA," Satish Pai, managing director of Hindalco Industries was quoted as saying.

The company's consolidated net debt/EBITDA significantly improved to 2.59x as of March 31, 2021 vs the peak of 3.83x as of June 30, 2020.  As on March 31, 2021, the company’s consolidated net debt stands at Rs 47,419 crore, while cash and cash equivalent stands at Rs 18,575 crore.