Hindalco Q2 PAT down 35% YoY; net debt to EBITDA at 1.47x

Hindalco Industries reported 35% drop in consolidated net profit to Rs 2,205 crore in Q2 FY23 from Rs 3,417 crore in Q2 FY22.

Consolidated revenue for the second quarter stood at Rs 56,176 crore, up 18% YoY due to better realisations and operational efficiencies.

EBITDA declined by 29% to Rs 5,743 crore in the second quarter from Rs 8,045 crore recorded in the same period last year, impacted by rising input costs and unfavourable macros, partially offset by better operational performance of copper and downstream businesses.

Consolidated net debt to EBITDA was at 1.47x on 30 September 2022 compared to 1.93x on 30 September 2021.

Novelis' revenue in Q2 FY23 stood at $4.8 billion (vs $4.1 billion), up 17% YoY, supported by higher volumes, increased product pricing, favourable mix and higher average aluminium prices. Total shipments of flat rolled products (FRPs) were at 984 Kt in Q2 FY23, up 2% YoY, driven by recovery in automotive and aerospace shipments. Novelis delivered another quarter with adjusted EBITDA per ton at over $500 ($514 in Q2 FY23).

In the Aluminium business, Upstream revenue was Rs 8,215 crore in Q2 FY23 as against Rs 7,421 crore in the prior year period (up 11% YoY), supported by better realisations. Aluminium Upstream EBITDA stood at Rs 1,347 crore in Q2 FY23, down 57% YoY, impacted by higher input costs and unfavourable macros.

Aluminium Downstream revenue was Rs 2,884 crore in Q2 FY23 as against Rs 2,549 crore in the prior year period. Sales of Downstream Aluminium stood at 95 Kt as compared with 86 Kt in Q2 FY22, up 11% YoY. Aluminium Downstream EBITDA stood at a record Rs 200 crore in Q2 FY23, compared with Rs 76 crore for Q2 FY22, an increase of 163% YoY, primarily due to better pricing of downstream products.

Revenue from the Copper Business was Rs 9,658 crore this quarter, up 1% YoY, on account of higher volumes in Q2 FY23. EBITDA for the Copper Business was at Rs 544 crore in Q2 FY23 compared to Rs 352 crore in Q2 FY22, up 55% YoY, on the back of higher domestic sales and improved by-product realizations.

Satish Pai, Managing Director, Hindalco Industries, said: 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, our aluminium Downstream Business performed well with EBITDA more than doubling YoY due to better pricing and market demand. The Copper Business outperformed, reporting its highest ever metal and copper rod sales.

Novelis delivered another solid quarter with higher shipments driven by a recovery in automotive and aerospace segments, and better pricing.

The company maintained a strong balance sheet and robust cash flows with consolidated net debt to EBITDA ratio below 2 times.

Hindalco Industries is the metals flagship company of the Aditya Birla Group. A $26 billion metals powerhouse, Hindalco 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.

The scrip added 3.49% to currently trade at Rs 429.60 on the BSE.

On the BSE, 7.45 lakh shares were traded in the counter so far compared with average daily volumes of 3.20 lakh shares in the past two weeks.

Powered by Capital Market - Live News