Hindalco earns historic profit of INR 13,730 crore in FY2022, attributing to robust performance in downstream business

On Thursday, May 26, Hindalco Industries Limited reported the consolidated fourth quarter and full-year financial results for 2021-22, revealing highest-ever profits. Its consolidated PAT peaked to a record high at INR 3,851 crore in 4QFY22, a 100 per cent growth year-on-year.  In the entire year, consolidated PAT increased four-fold to INR 13,730 crore, driven by exceptional performance supported by favourable macros, strategic product mix and an improved performance by the downstream business.

Continuing to be the highest EBITDA margin producer of aluminium, Hindalco recorded a 30 per cent growth in Q4 EBITDA to INR 7,597 crore and a 59 per cent surge in full-year EBITDA to INR 30,056 crore. Novelis' adjusted EBITDA for the full financial year was recorded at $2.0 billion, up 19 per cent YoY.

Novelis’ net income from continuing operations stood at $217 million in Q4 FY2022, up 21 per cent year-on-year. During the entire fiscal year, the net income totalled $1 billion, surging by 122 per cent over the year.

Hindalco also showed its revenue from operations in the last quarter of FY2022 amounted to INR 55,764 crore compared to INR 40,507 crore during the same period last year. For the full financial year, revenue from operations stood at INR 1,95,059 crore, which during the same period of the preceding year was at INR 1,31,985 crore.

Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries, said: “With record profitability in the fourth quarter, we had a very good end to the year. We attribute Hindalco’s highest-ever profits not just to strong macros, but also our consistent focus on operational excellence and cost optimization. We continue to remain one of the world’s lowest cost and highest EBITDA margin producers of aluminium.”

He added, “Our strategy to build a more sustainable business model that is isolated from metal cycles is working very well for us. In line with this, we have allocated over 70 per cent of our growth capex to value-enhancing downstream segments. All our growth capex for the next five years will be funded out of internal accruals.”