Hindalco posts a 20% hike in nine months revenue for FY23 on higher primary aluminium shipments

On Thursday, February 9, Hindalco Industries Limited, a subsidiary of the Aditya Birla Group, announced the fourth quarter results ended December 31, FY2022-23, reporting a 6 per cent year-on-year rise in revenue to INR 53,151 crore. But on a quarter-on-quarter basis, the revenue stood 5.38 per cent lower than INR 56.176 crore.  The total revenue in nine months of the fiscal year FY2023 stood at INR 167,345, up by 20.14 per cent from INR 139,295 crore in the past year.

The overall increase in revenue could be attributed to higher sales volume and steady operational performance across India operations. Record total shipments of India primary aluminium was 349,000 tonnes, up 1 per cent from 345,000 tonnes.

Hindalco posted an EBITDA of INR 3,930 crore for Q3 FY23, down by 31.57 per cent Q-o-Q from INR 5,743 crore and 48.45 per cent Y-o-Y from INR 7,624 crore. For the nine months of FY23, Hindalco reported an EBITDA of INR 18,313 crore – 18.46 per cent less than INR 22,459 crore.

The company’s profit from continuing operations came in INR 1,362 crore during Q3 FY23 – 38.23 per cent less than INR 2,205 crore in the previous quarter and 62.79 per cent down from INR 3,660 crore a year ago. Hindalco’s aggregated profit during April-December 2022 summed INR 7,686 crore versus INR10,341 during the same period last year.

Hindalco also reported its EBITDA from upstream aluminium was INR 1,591 crore during Q3 FY23, which reflected an increase of 18.11 per cent from INR 1,347 crore in Q2 FY23 but a decline of 99.95 per cent from INR 3,309 crore in Q3 FY2022. Total upstream EBITDA in nine months was INR 6,210 crore, down by 29.06 per cent from INR 8,754 crore during the same period last year.

Under downstream aluminium segment, Hindalco’s EBITDA was recorded at INR 515 crore in nine months compared to INR 242 crore a year ago.

Commenting on the results, Mr Satish Pai, Managing Director, Hindalco Industries, said: “We are seeing core industries worldwide being buffeted by macro-economic and inflationary cost pressures, yet we delivered a strong operational performance with higher volumes across India business segments.”

He added, “Though the India Aluminium upstream business EBITDA came under pressure from the surge in input costs and lower realisations, this was partially offset by higher volumes. The India Aluminium downstream business segment delivered a higher EBITDA YoY, due to higher volumes and better pricing.”

Shipments of flat rolled products were 908,000 tonnes in Q3 FY23 versus 930,000 tonnes in Q3 FY22, on account of inventory reduction by can customers, partially offset by higher shipments of automotive and aerospace products.

Hindalco also mentioned in its quarterly report that it began pilot production at its new 34,000 extrusions facility in Silvassa, India.