Hindalco Industries Limited, the Aditya Birla Group metals flagship, reported its highest consolidated net profit at Rs 4,119 crore on Wednesday, up 48 per cent YoY, for the quarter ended June 30th, 2022. The company had posted a profit of Rs 2,787 crore in the year-ago period.
Hindalco's shares rose 4.73 per cent to Rs 441.40 at the previous close of Rs 421.45 on the BSE, according to the post-declaration of results. The stock is trading higher than the 5 day, 20 day and 50 day moving averages, but lower than the 100 day and 200 day moving averages.
In March, Hindalco broke its record performance despite rising costs and inflationary pressures.
The results were driven by an excellent performance by Novelis, a robust performance by the downstream and copper businesses, as well as operational efficiencies and higher volumes, the company said in a regulatory filing.
Revenue from operations went up 40 per cent to Rs 58,018 crore in the same quarter as compared to Rs 41,358 crore a year ago.
Its net debt to EBITDA was strong at 1.40 x on June 30, 2022, compared to 2.36 x on June 30, 2021.
Hindalco also stated that Novelis reported its best-ever quarterly EBITDA and EBITDA per ton, mainly due to higher product pricing, favourable product mix and recycling benefits.
The company reported its best ever adjusted EBITDA of $561 million versus $555 million, up 1 per cent YoY, due to higher product pricing, favourable product mix and higher recycling benefits. The total shipments of flat rolled products FRPs were at 962 Kt compared to 973 Kt in Q 1 FY22, which was marginally lower due to supply chain constraints.
After the record profitability of the fourth quarter, Satish Pai, Managing Director, Hindalco Industries, said, "I am pleased to share that we delivered an even stronger first quarter despite rising input costs and inflationary pressures." Our performance was backed by strong operational efficiencies and pre-emptive sourcing of critical raw material, which ensured stable operations and higher margins. Our business model supports our position as an integrated aluminium producer with one of the world's best EBITDA margins. Our product mix enhancement strategy is working well with the growth of the Aluminum Downstream EBITDA by four-fold YoY. Novelis reported its highest ever EBITDA per ton, driven by higher product pricing, favourable product mix and higher recycling benefits. We are focused on riding all market cycles with our greener, stronger, smarter approach.