Hindalco reports lower downstream aluminium sales for 1QFY2024, resulting in a 5% decline in revenue

Hindalco Industries Limited, one of India's biggest aluminium manufacturing companies, announced the first quarter results of FY2023-24 ended June 30, revealing a net profit of INR 2,454 crore, up by 1.75 per cent Q-o-Q from INR 2,411 crore, driven by a recovery in Novelis business. However, on a year-on-year basis, the profit edged a fall of 40.42 per cent from INR 4,119 crore.

It is to be noted here that Hindalco's net profit grew sequentially in Q1 despite the fall in revenue from operations. Hindalco's Q1 revenue stood at INR 52,991 crore, down by 5.13 per cent from INR 55,857 crore in Q4 FY2023, contributed by the downstream aluminium business. Hindalco's Q1 revenue from the downstream aluminium was INR 2,435 crore against 81,000 tonnes of sales versus INR 2,738 crore against 90,000 tonnes of sales in the earlier quarter.

Hindalco's upstream aluminium revenue in Q1 was INR 8,064 crore versus INR 8,050 crore in the previous quarter.

Hindalco's consolidated EBITDA increased over the quarter by 5 per cent from INR 5,818 crore to INR 6,109 crore but declined over the year by 29.3 per cent from INR 8,640 crore. Hindalco's EBITDA from Novelis and downstream aluminium business lifted from INR 3,314 crore to INR 3,456 crore and from INR 112 crore to INR 147 crore, respectively, but from upstream aluminium decreased 11.72 per cent from INR 2,192 crore to INR 1,935 crore.

Novelis' (independent subsidiary of Hindalco) flat rolled products shipments were at 879,000 tonnes in Q1 FY2024, down by 6 per cent Q-o-Q from INR 936,000 tonnes due to lower beverage cans shipments and unfavourable economic conditions impacting global demand.

Hindalco also highlighted in its Q1 report that it collaborated with Tata Motors to build the first-ever all-aluminium cargo body for the new generation Tata Ace EVs designed to enhance last mile deliveries.

The company also mentioned that 34,000 tonnes of aluminium extrusions plant in Silvassa began commercial production. The highlight was the 'India's Best Employers Among Nation Builders – 2023' award by Great Place To Work® Institute (India).