
Result date: 9th February, 2023
Recommendation: Buy
Target price: Rs 499
Source: IIFL Research
Hindalco Industries (Hindalco) could witness decline in consolidated revenue on a sequential basis owing to fall in LME Aluminum prices (averaged at $2,336/t, down 1.1% sequentially, 15% over the year-ago quarter). This, along with lower shipments of Novelis could put pressure on revenue.
Weakness in revenue is likely to trickle down to EBITDA which could decline 27% over the year-ago quarter and 0.5% sequentially. Lower EBITDA from Novelis, higher energy costs are prominent margin pressures.
Profit After Tax (PAT) could decline 42.3% over the year-ago quarter and about 8% sequentially.
Important management insights to watch out for:
Rs. Million | December 2022 estimates | YoY change | QoQ change |
Sales | 531,109 | 5.7% | (5.5)% |
EBITDA | 53,871 | (27.2)% | (0.5)% |
PAT | 20,082 | (42.3)% | (7.9)% |
Source: Brokerage reports
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