You are here: Home » Companies » Results
Business Standard

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

Topics
Hindalco Industries | Hindalco results | Q2 results

Aditi Divekar  |  Mumbai 

Hindalco Industries Q2 PAT all-time high at 3,417 cr, up 9-fold YoY

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 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.

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

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.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, November 12 2021. 17:53 IST
RECOMMENDED FOR YOU
.