Hindalco Industries slips ~3% as Q1 net profit slumps 40% y-o-y

8 Aug 2023 , 02:08 PM

Hindalco Industries reported a 40.4% y-o-y decline in overall net profit for the June 2023 quarter to Rs 2,454 crore on Tuesday. Revenue from operations fell roughly 9% year-on-year to Rs 52,991 crore.

Following this development, Hindalco Industries’ counter fell 2.40% to Rs 453.70, against the previous close of Rs 464.85 on NSE. The counter touched an intraday low of Rs 452.

On a standalone basis, net profit fell 59% year-on-year to Rs 600 crore, but was somewhat higher than street estimates. Sales increased by 2% year-on-year to Rs 19,904 crore, exceeding the projected Rs 17,753 crore.

The aluminium major’s overall performance was hampered by Novelis’ poor performance, lower realisation, and weak demand.

Consolidated EBITDA fell 32% year-on-year to Rs 5,714 crore. 

Company’s operating profit margin shrank by 375 basis points to 10.78%. The quarter witnessed margin contraction despite lower raw material, power, and fuel costs.

Raw material cost fell to Rs 31,786 crore in the quarter, down from Rs 35,313 crore in the same quarter of previous year. Power and fuel costs were reduced from Rs 4,018 crore to Rs 3,757 crore year-on-year.

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