Hindalco Q3 net jumps 71% as aluminium, copper biz shine

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Hindalco Industries, the flagship company of the Aditya Birla group, on Tuesday reported a 71% year-on-year jump in its consolidated net profit to ₹2,331 crore for the quarter ended December driven by a robust performance of its aluminium and copper businesses. The copper business registered an Ebitda growth of 20% on the back of strong volumes and robust operations, said Satish Pai, managing director of Hindalco Industries Ltd. Ebitda is earnings before interest, tax, depreciation, and amortization.

The aluminium upstream business Ebitda rose 54%, supported by stable operations and lower raw material costs, he added. "We continue investing in promising growth areas in aluminium and copper downstream. Our overseas business and global recycling leader Novelis showed a 33% YoY improvement in Ebitda and Ebitda per tonne, driven by favorable metal benefits from recycling, higher pricing, and lower operating costs," said Pai.

The company's consolidated revenue from operations for the quarter in consideration though declined 1% year-on-year to ₹52,808 crore in Q3FY24. “Revenue is driven by the amount of aluminium we sold, which was flattish because we were flat on everything that we can produce and we produce, and the LME was also low," the MD said. "But we continue to stay on our growth track despite challenging market conditions, delivering a strong performance, driven by an enhanced product mix and lower input costs across our businesses," Pai said.

The company's consolidated Ebitda stood at ₹6,322 crore, a 61% rise, with an operating margin of 11%. Hindalco said it was able to reduce its cost of production as the price of raw material like coal continued to ease in the third quarter. “Robust cash generation in India