Hindalco logs record profit of ₹3,851 crore in Q4

Our Bureau Updated - May 26, 2022 at 08:38 PM.

Profits not just due to strong macros, but also consistent focus on operational excellence and cost optimisation, says MD

Hindalco Industries, an Aditya Birla Group company, has reported that its net profit in the March quarter almost doubled to ₹3,851 crore against ₹1,928 crore logged in the same period last year, largely due to the run-away aluminium prices.

Revenue from operation was up at ₹55,764 crore (₹40,507 crore). Ebitda during the quarter increased to ₹7,597 crore (₹5,845 crore) despite sharp increase in coal prices. The company has announced a dividend of ₹4 per share.

For year ended March, the company recorded the highest-ever profit in its history of ₹13,370 crore (₹3,483 crore) on a revenue of ₹195,059 crore (₹131,985 crore). Ebitda was at ₹30,056 crore (₹18,896 crore).

‘Result of operational excellence’

Satish Pai, Managing Director, Hindalco Industries, said the highest-ever profits were not just due to strong macros, but also due to consistent focus on operational excellence and cost optimisation. “We continue to remain one of the world’s lowest cost and highest EBITDA margin producers of aluminium. The company has allocated over 70 per cent of its growth capex to value-enhancing downstream segments which will be funded through internal accruals,” he said.

The company’s gross debt has come down to ₹63,237 crore in March against ₹65,994 crore in same period last year. The cash increased to ₹24,141 crore (₹18,575 crore). It will be repaying bonds and debt worth ₹8,500 crore in this fiscal.

Revenue from aluminium up

Revenue from aluminium business increased to ₹9,847 crore against ₹5,969 crore as production increased to 3,26,000 tonnes agianst 3,16,000 tonnes in the same quarter last year. Aluminium metal sales were up 2 per cent to 3,36,000 tonnes (3,29,000 tonnes). Aluminium VAP (excluding wire rods) sales volumes were at a record 93,000 tonnes (92,000 tonnes), up 1 per cent driven by recovery of the domestic market. VAP sales, as a percentage of total metal sales, were at 28 per cent in the quarter under review.

Copper production, sales down

Copper cathode production was down marginally at 94,000 tonnes (97,000 tonnes) while copper rod production lower at 69,000 tonne (76,000 tonne). Overall copper metal sales also dipped to 1,05,000 tonnes (1,07,000 tonnes), Copper continuous cast rod sales were up two per cent at 74,000 tonne. Ebitda increased 20 per cent to ₹387 crore (₹322 crore) on back of improved by-product realisations. Revenue from the copper business was up 15 per cent at ₹9,787 crore in this quarter on higher prices.

Published on May 26, 2022 15:08

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