Hindalco sees a multiple increase in net profit to Rs 3,417 billion in the second quarter
New Delhi: Hindalco Industries Ltd, the metal flagship of the Aditya Birla Group, reported multiple increases in consolidated profit after tax (PAT) on Friday to Rs 3.417 billion for the quarter ended September 30th.
The results were driven by exceptional performance from the Novelis and India businesses, supported by cheap macros, a strategic product mix, higher volumes and stable operations.
The company had posted a consolidated PAT of Rs 387 billion in the same period last year, Hindalco Industries said in a filing with BSE. Consolidated operating sales for July through September 2021 rose to Rs 47,665 billion compared to Rs 31,237 billion for the same period last year, the filing said.
In a statement, the company said, “Hindalco Industries … reported its highest net income in Q2 FY22, surpassing all previous quarterly results. The company’s consolidated PAT increased 783 percent to 3,417 billion. “
Novelis continued to report high quarterly EBITDA, driven by increasing demand for innovative and sustainable aluminum products, high levels of recycled content and outstanding operational performance, the statement said.
This is despite the challenges in the automotive segment due to the global scarcity of semiconductor chips, she added.
Satish Pai, Managing Director of Hindalco Industries, said, “Our record-breaking performance this quarter is a confirmation of our fully integrated business model that drives our performance in both upstream and downstream markets.”
Pai added that Hindalco reported excellence in all of its business areas.
“The Indian aluminum business has set an almost worldwide industry record with the Ebitda margin (earnings before interest, taxes, depreciation and amortization) of 42 percent,” he said.
The copper business achieved the highest quarterly sales of all time in the second quarter, with both smelters running optimally to meet robust market demand. Novelis hit another record Ebitda per tonne, driven by higher volumes and cheap metal prices, he said.
“Our product-rich portfolio strategy continues to deliver results in various market scenarios. It encourages us to continue building the downstream asset base and expanding our market presence.
“The recent acquisition of the Ryker copper tubing unit is in line with our downstream investment (investment) plans announced earlier this year. We continue to advance our environmental, social and governance (ESG) agenda to meet our sustainability vision of net neutrality, water positive, zero runoff and more, ”he added.
The company said the record results were driven by excellent performance from Novelis as well as India, supported by a strong rebound in all relevant markets, as well as improved macros and higher volumes.