Hindalco Reports highest net profit in First Quarter at Rs. 4,119 cr

Mumbai: Hindalco Industries Limited, the Aditya Birla Group metals flagship, once again reported its highest net profit in Q1 FY23, surpassing its record performance in Q4 FY22. The company’s consolidated PAT peaked to an all-time high of Rs. 4,119 crore, a 48 per cent growth YoY, and 7 per cent sequentially despite rising costs and inflationary pressures.

The results were driven by an excellent performance by Novelis, and a robust performance by Aluminium Downstream and Copper businesses, supported by operational efficiencies and higher volumes.

Novelis reported its best-ever quarterly EBITDA and EBITDA per tonne, primarily due to higher product pricing, favorable product mix and recycling benefits.

Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries, said, “After the record profitability of the fourth quarter, I am pleased to share that we delivered an even stronger first quarter despite rising input costs and inflationary pressures. Our performance was backed by strong operational efficiencies and pre-emptive sourcing of critical raw material, thus ensuring stable operations and higher margins.

Our business model supports our position as an integrated aluminium producer with one of the world’s best EBITDA margins. Our product mix enhancement strategy is working well with the Aluminium Downstream EBITDA growing four-fold YoY. Novelis reported its highest ever EBITDA per ton driven by higher product pricing, favourable product mix and higher recycling benefits. Looking ahead, we remain focused on riding all market cycles with our greener, stronger, smarter approach.”

Consolidated Results
Hindalco reported an all-time high EBITDA of Rs.8,640 crore (vs Rs.6,790 crore) in Q1 FY23, up 27 per cent YoY. The excellent results were driven by better macros, robust performance of Aluminium Downstream and Copper businesses along with better operating efficiencies.

Consolidated revenue for the first quarter stood at Rs.58,018 crore (vs Rs.41,358 crore), up 40 per cent YoY. Consolidated PAT in Q1 FY23 was at a record Rs.4,119 crore up from Rs.2,787 crore in Q1 FY22, a jump of 48 per cent YoY. Consolidated Net Debt to EBITDA remained strong at 1.40x on June 30, 2022 compared to 2.36x on June 30, 2021.