Hindalco Inds gains after Q4 PAT spurts 100% YoY to Rs 3,851 cr

Hindalco Industries rose 1.59% to Rs 414.25 after the company's consolidated net profit rose 99.74% to Rs 3,851 crore on 37.67% rise in net sales to Rs 55,764 crore in Q4 March 2022 over Q4 March 2021.

On a consolidated basis, profit before exceptional items and tax rose 56.27% year-on-year to Rs 5,032 crore in Q4 March 2022. The company reported net exceptional expense of Rs 251 crore in Q4 FY22.

EBITDA jumped 30% to Rs 7,597 crore during the period under review. Total expenses rose 39.72% to Rs 48,720 crore. Cost of material consumed rose 44.14% to Rs 36121 crore while employee benefits expenses rose 1.67% to Rs 2977 crore.

The company reported operating cash flow (OCF) of Rs 16838 crore in the year ended 31 March 2022 compared with OCF of Rs 17232 crore in the year ended March 2021.

Consolidated net debt to EBITDA was at a strong 1.36x on 31 March 2022 compared to 2.59x on 31 March 2021.

Hindalco said the results were driven by an exceptional performance by India Business, supported by favourable macros, strategic product mix and an improved performance by the downstream business.

Novelis reported quarterly adjusted EBITDA of $431 million (vs $505 million), down 15% YoY, primarily due to cost inflation, semiconductor chip shortage in automotive and other short-term operational issues, and a non-recurring regulatory provision taken in the quarter.

Novelis' Net Income from continuing operations was $217 million, up 21% YoY, mainly driven by lower interest expense in Q4 FY22. Revenue was $4.8 billion (vs $3.6 billion), up 34% YoY, driven by higher global aluminium prices.

Aluminium India segment EBITDA was at an all-time high of Rs 4,050 crore in Q4 FY22, compared with Rs 1,819 crore for Q4 FY21, an increase of 123% YoY, primarily due to favourable macros, higher volumes, better operational efficiencies, and improved performance of downstream business offset by higher input costs. EBITDA margins were at 41% and continue to be the best in the industry.

Copper Cathode production was at 94 Kt in Q4 FY22 (vs 97 Kt in Q4 FY21) while copper rod production was 69 Kt in Q4 FY22 (vs 76 Kt in Q4 FY21). EBITDA for the business stood at Rs 387 crore in Q4 FY22 compared to Rs 322 crore in Q4 FY21, up 20% YoY, on the back of better operational efficiencies and improved by-product realisations. Revenue from the Copper Business was Rs 9,787 crore this quarter, up 15% YoY, primarily due to higher global prices of copper and higher volumes.

Hindalco Industries, the metals flagship company of the Aditya Birla Group, is the world's largest aluminium company by revenues, and a major player in copper. It is also one of Asia's largest producers of primary aluminium.

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