Hindalco’s Q1 Profit Surges 75% YoY to Record ₹7,013 Crore, With Revenue Up 32%.
Hindalco Industries has delivered a robust financial performance for the quarter ending June, reporting a consolidated net profit surge of 75% year-on-year, reaching an all-time high of Rs 7,013 crore. Revenue from operations increased by 32%, totaling Rs 84,825 crore, significantly improving from the previous year’s Rs 64,232 crore. The consolidated EBITDA also demonstrated strong growth, rising 73% to Rs 14,989 crore, bolstered by impressive contributions from both its aluminium and copper operations in India, as well as a rebound at its subsidiary, Novelis.
The India business was a standout performer, achieving a 24% increase in revenue to Rs 30,985 crore and an astonishing 73% growth in EBITDA to Rs 8,606 crore. Notably, profit after tax surged by 86% to Rs 5,301 crore, benefitting from the transition to a lower effective tax rate of 26%. This strategic pivot aligns well with the company’s continued investment in upstream capacities across alumina, aluminium, and copper, as well as downstream innovations like battery foil and flat-rolled products, setting the stage for sustained growth.
On the commodity front, the aluminium upstream business generated Rs 13,403 crore in revenue, reflecting a 44% YoY increase, while achieving an EBITDA margin expansion to 55%. The company’s shipment volume rose slightly by 3% to 335 kilotonnes, suggesting resilient demand. Meanwhile, the copper segment reported a revenue uptick of 16% to Rs 17,232 crore, despite experiencing a planned maintenance shutdown, supported by higher by-product realizations and a favorable operating performance. The strategic ramp-up of new facilities, particularly in e-waste recycling, further underpins Hindalco’s forward-looking operational strategy.
Novelis, Hindalco’s subsidiary, also showcased solid growth with revenue climbing 23% to $5.8 billion. Although shipments declined by 5%, the unit’s adjusted EBITDA saw a notable increase of 24% to $516 million, driven by heightened metal prices and cost-saving initiatives, which are projected to achieve total savings of $350-400 million by FY28. This dual focus on improving operational efficiencies, alongside revenue growth, positions Novelis favorably to meet its long-term EBITDA guidance of over $600 per tonne, reinforcing Hindalco’s overall market position amidst evolving industry dynamics.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)