Hindalco Q2 results reflect Net profit slump by 60% YoY to INR 387 crore

On 10^th November’20, the world's largest aluminium rolling company and among the biggest producers of primary aluminium in Asia, Hindalco, posted a 60% year-on-year slump in consolidated net profit at INR 387 crore for the quarter ended September 30 after considering net loss from running and disinvestment of discontinued operations of INR 31,237 crore.

Although, profit from continuing operations surged by 83% YoY to INR 1,785 crore and consolidated revenue from operations shoot up 5.32% YoY to INR 31,237 crore.

EBITDA from Hindalco’s Indian aluminium business soared 32% YoY and 25% QoQ to INR 1,066 crore, whereas, margins witnessed a rise of 760 basis points YoY to 22%.

Consolidated net debt to EBITDA stood at 3.52 times as on September 30 against 3.83 times in the preceding quarter ended June 30.

Hindalco said in a regulatory filing: “The results were driven by a strong performance by Novelis and India aluminium business, supported by higher volumes and better product mix, lower input costs, stability in operations, and cost-saving initiatives. The copper business also bounced back from the disruption in Q1FY21 with ramped up operations in the second quarter. Novelis reported an all-time high EBITDA as well as EBITDA per tonne in Q2FY21, backed by record performance in beverage cans, and a market revival in the automotive and high-end speciality markets in the US and Asia regions.”

Satish Pai, Managing Director, Hindalco Industries, said, “It is heartening to see a sharp recovery of demand to near pre-Covid levels in India aluminium and copper businesses. Novelis, too, saw a similar rise across segments, except for aerospace.”