Hindalco Ltd Q3 net up 95.8% yoy at Rs3,675cr on EBITDA boost from Novelis and Indian aluminium vertical

11 Feb 2022 , 07:28 AM

Hindalco Ltd reported 43.81% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs50,272cr. On a sequential basis, the revenues were up by 15.47%.

During the December 2021 quarter, Novelis shipments were flat at 930KT as the ongoing semiconductor shortage had an impact. The India aluminium business saw aluminium metal sales 3% higher at 325 KT.

Sales of aluminium value added products were up 8% yoy at 86 KT. Meanwhile, the production at the Utkal alumina refinery has expanded to full capacity. In the copper vertical, cathode production doubled to 102 KT while metals sales volumes were up 50% at 110KT. Net debt to equity sharply improved from 2.59X to 1.62X yoy.

For the Dec-21 quarter, the operating profits were up 39.9% at Rs7,580cr. However, the operating profits were marginally lower by -1.58% on a sequential basis.

For Novelis operations, the EBITDA was 15 higher at $506 million while EBITDA per tonne came in at $544/tonne. The India aluminium business saw record surge in EBITDA by 131% to record levels of Rs.3,376cr on better operational efficiencies and better downstream performance.

EBITDA margins improved sharply from 28% to 41% yoy. Copper EBITDA was up 63% yoy at Rs.390 crore on improved product realizations. Net profits were at record levels.

Net Profit after tax (PAT) for the Dec-21 quarter was up 95.79% yoy at Rs3,675cr on the back of improved operating efficiencies and better mix favouring downstream products. In the last one year, the global price of aluminium has rallied by 44% yoy from $1,916/tonne to Rs.2,762/tonne.

PAT margins improved from 5.37% in the Dec-20 quarter to 7.31% in the Dec-21 quarter. The PAT margins were higher by 14 bps on a sequential basis.

Financial highlights for Dec-21 compared yoy and sequentially

	Hindalco Ltd
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 50,272	₹ 34,958	43.81%	₹ 47,665	5.47%
Operating Profit (Rs cr)	₹ 7,580	₹ 5,418	39.90%	₹ 7,702	-1.58%
Net Profit (Rs cr)	₹ 3,675	₹ 1,877	95.79%	₹ 3,417	7.55%
Diluted EPS (Rs)	₹ 16.50	₹ 8.44		₹ 15.34
Operating Margins	15.08%	15.50%		16.16%
Net Margins	7.31%	5.37%		7.17%