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Hindalco Industries, an Aditya Birla Group company, reported net profit of ₹2,787 crore in the quarter ended June 30, against a net loss of ₹709 crore in the same period last year, driven largely by higher realisation and better contribution by its overseas subsidiary, Novelis .
Its revenue from operations was at ₹41,358 crore (against ₹25,283 crore).
Novelis reported an all-time high quarterly EBITDA of ₹4,090 crore (against 1,919 crore) due to an upswing in demand for innovative and sustainable aluminium products. Domestic aluminium and copper EBITDA increased multi-fold to ₹2,352 crore (against ₹ 973 crore) and ₹261 crore (against 66 crore), respectively.
Overall EBITDA rose to ₹6,790 crore against ₹2,359 crore in the corresponding quarter last year. Finance cost went down to ₹820 crore from ₹992 crore.
Gross debt increased three per cent to ₹67,836 crore from ₹65,994 in the quarter ended March 2021 while net debt rose to ₹51,913 crore from ₹47,419 crore.
The company has written down a ₹863 crore receivable from GFG Alliance to ₹397 crore, thus writing it down by ₹469 crore including legal cost of ₹19 crore in the June quarter.
Hindalco had sold its Duffel unit in Belgium to GFG Alliance for ₹2,675 crore last September, but received only ₹1,812 crore and entered into an arbitration process to recover the remaining amount.
The company has decided to increase its downstream flat rolled product capacity at Hirakud and Aditya Aluminium to 170,000 tonnes per annum with an investment of ₹3,000 crore. The project is expected to be completed in 36 months and commence production by FY25, it said.
The company holds 2.6 per cent stake in the troubled group company Vodafone Idea Cellular, and is revalued every quarter.
Satish Pai, Managing Director, Hindalco Industries, said the company has no intention to invest further in Vodafone Idea and investment is written down as per the current market value.
The write-down is insignificant given Hindalco’s financial strength, he added.
On the company’s performance, Pai said the robust financial performance was driven by an accelerated pace of deleveraging, and the increasing strength of the balance sheet was reflected in credit rating upgrades for both Novelis and Hindalco.
Aluminium business revenue was up at ₹6,267 crore (against ₹4,436 crore). EBITDA hit at an all-time high of ₹2,352 crore in the June quarter of FY22 against ₹973 crore logged in the same period last year.
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