Hindalco's 78% profit gain in Q2 takes the market by storm after its highest ranking as the World's Most Sustainable Aluminium Company

Hindalco Industries Limited, the Aditya Birla Group metals flagship and one of India's biggest aluminium manufacturing companies has announced the second quarter results for the fiscal year 2024-25, reporting a year-on-year hike of 7.45 per cent in revenue from operations. From INR 54,169 crore (US$6.418 million) in Q2 FY2024, Hindalco's revenue increased to INR 58,203 crore (US$6.896 million) in Q2 FY2025. On a quarterly basis, the company's revenue grew by 2.09 per cent from INR 57,013 crore (US$6.755 million).

Hindalco's total revenue in H1 FY2024-25 stood at INR 115,216 crore (US$13.65 million), up by per cent Y-o-Y from INR 107,160 crore (US$12.7 million).

In Q2 FY2025, Hindalco's profit was INR 3,909 crore (US$463,153), reaching the highest quarterly profit after recording a year-on-year surge of 78 per cent from INR 2,196 crore (US$260,208) and a quarter-on-quarter increase of 27.16 per cent from INR 3,074 crore (US$364,244).

In H1, the company's profit totalled INR 6,983 crore (US$827,429), up by 50.17 per cent annually from INR 4,650 crore (US$550,976).

Hindalco's Q2 FY2025 EBITDA was INR 8,564 crore (US$1.01 million), up by 24.46 per cent Y-o-Y from INR 6,881 crore (US$815,335) but slightly down Q-o-Q compared to INR 8,578 crore.

Backed by the annual rise, Hindalco's total EBITDA in H1 FY2025 stood 32.11 per cent higher Y-o-Y at INR 17,092 crore (US$2.025 million) versus INR 12,938 crore (US$1.533 million) in H1 FY2024, majorly driven by the upstream sector recording an EBITDA of INR 7,202 crore (US$853,392) versus INR 4,009 crore (US$474,990) a year ago.

Novelis' EBITDA in the second quarter was INR 3,872 crore (US$458,768), down by 3.15 per cent Y-o-Y from INR 3,998 crore (US$473, 697) and 7.15 per cent Q-o-Q from INR 4,170 crore (US$494,061), affected by the Sierre flood and tightening of scrap spreads.

Hindalco's robust second-quarter results followed the news of the company being listed as the World's Most Sustainable Aluminium Company for the fifth consecutive year in the 2024 edition of the S&P Global Corporate Sustainability Assessment (CSA) rankings. Hindalco is the only aluminium company to have achieved a total score of 87 points (as of 30 October 2024), thereby improving its tally by 9 points from the last year and 22 points ahead of its closest peer.

Commenting on the Q2 results, Mr Satish Pai, Managing Director of Hindalco Industries, said: "Our India business delivered a strong operational performance in Q2 bolstered by our relentless focus on operational reliability and cost management. Consequently, our Aluminium India Upstream business reported an EBITDA per tonne of $1,349— the highest in the last 10 quarters and the best-in-industry globally. The Copper business achieved another record quarterly EBITDA. Novelis' global footprint allowed the company to achieve record beverage packaging shipments, partially offsetting the impact from the flooding-related outage at Sierre."

He added, "During the quarter, we made significant progress across our growth projects in India Business and Novelis. Our company's robust cash flow generation enabled us to maintain a consolidated net debt-to-EBITDA ratio below 1.2x."