Q2FY24 Preview: Hindalco Industries: Revenue seen at Rs. 526,762 million, PAT at Rs. 4,852 million

7 Nov 2023 , 12:26 PM

Result date: November 10, 2023

Recommendation: Buy

Target price: Rs. 574

Hindalco Industries (Hindalco) could witness 6% decline in its revenue as compared to the year-ago quarter, estimate analysts at IIFL Capital Services. Higher volume growth at Novelis (amid continued traction in beverage can and automotive segments) will be a key positive. However, back home, lower LME prices will be a pressure point, which could be partly offset by lower costs. Hindalco’s copper business could stay stable amid higher by-product prices and value added sales.

Overall profitability could be under pressure amid unfavorable operating leverage. Profit After Tax (PAT) could decline 78% as compared to the year-ago quarter.

Important management insights to watch out for:

• Growth outlook 
• Margin drivers and trends thereof

Rs. Million	September 2023 estimates	YoY change
Revenue	526,762	(6.2)%
EBITDA	42,194	(21.3)%
Profit After Tax	4,852	(78.0)%

Source: IIFL Research