Hindalco Q3FY25 results: Net profit up 60.2%, beats street estimates

Profit boost from robust India aluminium business and higher other income

Metal maker Hindalco Industries reported a 60 per cent jump in its consolidated net profit (attributable to the owners of the company) in the October–December 2024 period (Q3) on the back of strong operational performance and higher other income.

 

The company’s net profit in the quarter stood at Rs 3,735 crore, up from Rs 2,331 crore a year ago. Revenue for Hindalco rose 10 per cent to Rs 58,390 crore. Other income in the same period surged more than 80 per cent to Rs 509 crore.

 

In a Bloomberg poll, 19 analysts estimated an adjusted net income of Rs 3,372 crore and revenue of Rs 55,631 crore.

 

The company said the growth in profits was driven by an excellent operational performance by the India business. “India business reported a net profit of Rs 2,885 crore, up 134 per cent,” it noted. The buoyancy of the India business helped offset the 19 per cent dip in Ebitda seen for Novelis. Ebitda refers to earnings before interest, taxation, depreciation, and amortisation.

 

Hindalco’s India Aluminium Upstream business Ebitda margins stood at 42 per cent, the best in the industry globally, the company noted. Aluminium Upstream Ebitda reached an all-time high of Rs 4,222 crore, up 73 per cent, supported by lower input costs, it added.

 

In its presentation, the company noted that in Q3FY25, domestic demand for aluminium is likely to reach 1,403 kilotonnes (KT), reflecting 11 per cent year-on-year growth, primarily led by strong demand in packaging. 

 

The copper business recorded an Ebitda of Rs 777 crore, up 18 per cent, backed by continued strong domestic sales and higher by-product realisations, the company said.

 

Sharing an update on operations, Satish Pai, managing director, Hindalco Industries, said, “During the quarter, we secured critical resources for our India upstream business, enhancing our global cost leadership. Key growth initiatives, such as the alumina refinery, aluminium smelter expansion, copper smelter expansion, and the FRP project, remain on track.”

 

In a separate statement, Hindalco said negotiations on the proposed acquisition of Mywindow, a pre-fabrication company, did not materialise, and the transaction has officially been closed.

 

The company also announced senior management changes, with Bharat Goenka set to take over as the chief financial officer (CFO) of the company with effect from April. The current CFO, Praveen Kumar Maheshwari, will relinquish his post at the end of March.