Image Source: Mint
Hindalco Industries, Aditya Birla Group’s metals flagship, posted a consolidated net profit of ₹1,362 crore for the December quarter, down 63% year over year. In the same quarter last year, the figure was ₹3,675 crore.
Hindalco’s revenue from operations was ₹53,151 crore, up 6% year over year from ₹50,272 crore in the same period last year. Revenue growth was driven by higher volumes and consistent operational performance across India operations.
The substantial reduction in profitability was caused by poor operational performance. Hindalco claimed in a regulatory filing that its operational profit fell 48% to ₹3,930 crore, a reduction of 48% from the previous year.
Hindalco Managing Director, Satish Pai, said: “We are seeing core industries worldwide being buffeted by macro-economic and inflationary cost pressures, yet we delivered a strong operational performance with higher volumes across India’s business segments.”
The upstream aluminium segment of the global aluminium major posted an operational profit of ₹1,591 crore with a margin of 19.8%.
The downstream aluminium company recorded a 24% YoY increase in operating profit to ₹157 crore, while operating profit per tonne increased 7% year on year to $210.
The copper industry increased its quarterly operating profit by 40% year over year to ₹546 crore. Meanwhile, copper rod sales reached an all-time high in the current quarter.
“Though the India Aluminum upstream business EBITDA came under pressure from the surge in input costs and lower realisations, this was partially offset by higher volumes.” Because of higher volumes and better pricing, the India Aluminium downstream business segment delivered a higher EBITDA year on year.”The copper business registered a 40% growth in EBITDA, driven by higher volumes and better realisations, supported by robust domestic demand,” Pai said.
Due to the disappointing profits, Hindalco Industries Ltd.’s shares momentarily fell into the red, reaching a low of ₹431.75. However, shares gained 0.55% and are presently trading at ₹438.90 a share on the NSE in lunchtime trades.
