Hindalco’s Q1 PAT exceeds the previous quarter to reach a new high at INR4119 crore

On Wednesday, August 10, Hindalco Industries Limited announced its first quarter results ended June 30, posting the highest net profit once again. The company’s consolidated profit after tax (PAT) reached an all-time high at INR 4,119 crore, exceeding record performance in 4QFY2022. On a year-on-year calculation, it recorded a 48 per cent hike, while on a quarter-on-quarter 7 per cent rise.

The company’s revenue from operations in the April-June period jumped to INR 58,018 crore from INR 41,358 crore during the same period last year, and consolidated EBITDA grew 27 per cent over the year to stand at INR 8,640 crore. These robust financial results were driven by an excellent operational performance by Novelis, a subsidiary of multinational aluminium manufacturing company Hindalco.

Novelis’ Adjusted EBITDA grew to a new record high at $561 million in Q1, supported by higher product pricing, favourable product mix, and improved recycling performance.

Better pricing also raised Hindalco's EBITDA from both the upstream and downstream sectors to INR 3,272 crore in 1QFY23 versus INR 2,317 crore a year ago and to INR 158 crore in 1QFY23 from INR 39 crore in 1QFY22.

Commenting on the results, Mr Satish Pai, Managing Director of Hindalco Industries, said: "After the record profitability of the fourth quarter, I am pleased to share that we delivered an even stronger first quarter despite rising input costs and inflationary pressures. Our performance was backed by strong operational efficiencies and pre-emptive sourcing of critical raw material, thus ensuring stable operations and higher margins. Our business model supports our position as an integrated aluminium producer with one of the world's best EBITDA margins. Our product mix enhancement strategy is working well with the Aluminium Downstream EBITDA growing four-fold YoY. Novelis reported its highest ever EBITDA per tonne driven by higher product pricing, favourable product mix and higher recycling benefits. Looking ahead, we remain focused on riding all market cycles with our greener, stronger, smarter approach."

Hindalco has also shared a strong outlook for its Novelis business, which contributes more than half to consolidated operating profits. Hindalco has already revised its sustainable EBITDA per tonne guidance to $525 plus from earlier $500 plus.