Hindalco posts a 25% rise in net profit for Q1 FY2025, backed by robust operations and favourable LME aluminium prices

On Tuesday, August 13, Hindalco Industries Limited announced the first quarter results of the financial year 2024-25 ended June 30. In the report, the company highlighted its robust fiscal growth, attributing to the jump of global aluminium prices on the London Metal Exchange.

The profit earned in Q1 FY2025 before exceptional items and tax was INR 5,178 crore, up by 55.54 per cent Y-o-Y from INR 3,329 crore and 25.19 per cent higher Q-o-Q from INR 4,136 crore. Net profit amounted to INR 3,074 crore, also up by 25.26 per cent annually from INR 2,454 crore but reflected a sequential dip of 3.15 per cent from INR 3,174 crore. The Q-o-Q fall in net profit could be because of the expenses to repair the flood-affected Novelis plant in Switzerland. The company has made a provision of INR 330 crore for the same.

Hindalco’s revenue from operations in the June quarter was INR 57,013 crore, compared to INR 55,994 crore in Q4 FY2024 and 52,991 crore in Q1 FY2024. Thus, the revenue reflected a Q-o-Q increase of 1.82 per cent and a year-on-year hike of 7.59 per cent.  

Hindalco also highlighted a surge in EBITDA, amounting to INR 7,992 crore in Q1 FY2025. On an annual basis, the company’s EBITDA was up by 30.82 per cent from INR 6,109 crore, while that on a Q-o-Q calculation was 10.98 per cent higher than INR 7,201 crore. The company’s earnings from the upstream aluminium business rose exponentially to INR 3,493 crore versus INR 1,935 crore a year ago and INR 2,709 crore a quarter earlier.

Commenting on the remarkable fiscal output in Q1 FY2024, Satish Pai, the managing director of Hindalco, said that the company immensely benefitted from operational efficiency and the sharp rise in the LME aluminium price to $2,500 per tonne as against $2,300 per tonne logged during the same period of the previous year.