Hindalco Q4 profit escalates 189%, powered by Novelis and India aluminium business

The Indian aluminium and copper manufacturing company, Hindalco industries registered a whopping 189% Y-o-Y growth in consolidated profit at INR 1,928 crore in the March 2021 quarter, powered by Novelis and India aluminium business.

In Q4FY21, the consolidated revenue was at INR 40,507 crore, raised by 38.20%, when matched to the corresponding quarter of last fiscal.

Satish Pai, Managing Director, Hindalco Industries, said: "Our record Q4 results have strengthened our balance sheet even further, absorbing the Aleris acquisition and restoring consolidated net debt to EBITDA ratio to pre-acquisition levels. The Aleris business continues to positively impact the overall topline and EBITDA.”

"Through Q4, our India business continued to rise with demand higher than pre-COVID levels," he added.

Hindalco Industries consolidated business EBITDA leapt 33% Y-o-Y to INR 5,597 crore.

Hindalco said in its BSE filing: "Novelis recorded its best-ever quarterly adjusted EBITDA of $505 million, up 32% YoY, on the back of the higher organic volume, favourable metal benefits, and a $60 million EBITDA contribution from the acquired Aleris business. Adjusted EBITDA per ton was at $514 in Q4FY21, up 9% YoY."

Novelis' net income excluding tax-effected special items was at $172 million, a 12% rise on Y-o-Y, partially counterbalanced by higher depreciation and amortization associated with the acquisition of Aleris.

The company stated that revenue grew by 33% Y-o-Y to $3.6 billion, by reason of higher shipments, global aluminium prices, market premiums and adding total shipments of flat-rolled products (FRPs), which were at a record high of 983 Kt, growing 21% Y-o-Y, with the incorporation of the acquired Aleris business and high demand across end-product markets.

“India aluminium business' EBITDA was at an all-time high of INR 1,610 crore in Q4FY21, rising 54% YoY, primarily due to favourable macros, better operational efficiencies and lower input costs, and EBITDA margin of 27% was the highest in the last 12 quarters and continued to be amongst the best in the industry”, Hindalco said.

“The revenue generation stood at INR 5,969 crore in Q4FY21 against INR 5,299 crore in the previous year period, whereas, India aluminium business recorded metal production of 316 Kt (versus 327 Kt last year) with aluminium metal sales inclined by 5% YoY at 329 Kt”, the company added.

The copper business contributed 21% to total business, where the revenue stood at INR 8,508 crore in Q4FY21 boomed by 80%  Y-o-Y, primarily due to higher global prices of copper, while EBITDA at INR 269 crore fell 33.7% Y-o-Y.

Hindalco posted an 8% shrink in consolidated profit at INR 3,483 crore, however, the revenue rose by 12% to INR 131,985 crore compared to the preceding year.

The company added: "Looking ahead, although FY22 has started with a second COVID wave in India, Hindalco is confident that our inherent strengths and tenacity will support us through it."

“The gross debt declined by INR 18,187 crore and net debt by INR 14,883 crore as of March 2021 from its peak on June 30, 2020”, Hindalco concluded.