Hindalco Industries Q3FY22 Preview: Revenue seen at Rs16,565 crore, PAT at Rs1,529 crore

9 Feb 2022 , 12:13 PM

Result date: 10^th February, 2022
Recommendation: Buy
Target price: Rs. 607
(Source: IIFL Research)

Hindalco Industries’ domestic business (standalone + Utkal) could post mixed set of results for Q3FY22. Aluminium sales volumes are pegged at ~330,000 tonnes (versus 315,000 in Q3FY21 and 338,000 in Q2FY22). Copper volumes could come in at ~100,000 tonnes (versus 73,000 tonnes in Q3FY21 and 110,000 tonnes in Q2FY22).

EBITDA margin of domestic business is estimated at 19.6%, up from 13.4% in the year ago quarter, but a slight slip from 20.7% level witnessed in Q2FY22.

Novelis has posted another quarter of robust performance and this will aid consolidated results of Hindalco.

Important management insights to watch out for:

• Updates on acquisitions, deleveraging
• Capacity expansion plans

Rs. Crore	December 2021 estimates	YoY change	QoQ change
Revenue	16,565	45%	(5%)
EBITDA	3,253	113%	(10%)
PAT	1,529	(209%)	(16%)

Source: Company, Brokerage reports