Hindalco Q2 results: Consolidated PAT dips 35% YoY to ₹2,205 crore

Hindalco Industries on Friday reported a 35.5% year-on-year dip in its consolidated net profit for the July to September quarter at ₹2,205 crore, primarily due to elevated input costs and inflationary impacts. However, consolidated EBITDA declined by 29% yoy in Q2FY23 to ₹ ₹5,743 crore. On the contrary, the company's revenue from operations jumped around 18% YoY to ₹56,176 crore driven by higher volumes and better realisations.

As per its financial audit report, in Q2FY23, Hindalco maintained strong operational performance across all businesses. Copper Business and Aluminium Downstream reported year-on-year growth in EBITDA of 55% and 163% respectively, driven by better pricing and recovery in domestic demand.

Satish Pai, Managing Director, Hindalco Industries, said, "Over the years, Hindalco has transitioned to a resilient and integrated business model which supports our performance and profitability even when times are challenging. Despite a surge in input costs, the Company produced the highest-ever aluminium metal volumes."

He added, "While the Upstream Aluminium Business EBITDA was impacted due to elevated raw material and energy costs, our aluminium Downstream Business performed well with EBITDA more than doubling YoY due to better pricing and market demand. The Copper Business outperformed, reporting its highest ever metal and copper rod sales. Novelis delivered another solid quarter with higher shipments driven by a recovery in automotive and aerospace segments, and better pricing. The Company maintained a strong balance sheet and robust cash flows with consolidated Net Debt to EBITDA ratio below 2 times."

Hindalco's consolidated net debt to EBITDA was 1.47x as of September 30, 2022, versus 1.93x as of September 30, 2021.

Meanwhile, Hindalco's subsidiary Novelis delivered a solid second quarter despite challenging headwinds with revenue at $4.8 billion in Q2 FY23, an increase of 17% YoY, due to recovery in demand of automotive and aerospace segments, higher pricing, and favourable product mix. Novelis continued to report a quarterly EBITDA of over $500 million ($506 million in Q2 FY23, down 8% YoY).

Hindalco has been recognised as the World’s Most Sustainable Aluminium Company for the third year in a row in S&P Dow Jones Sustainability Indices (DJSI) Corporate Sustainability Assessment (CSA) rankings.

Shares of Hindalco were up 3.08% at ₹427.90 apiece on the National Stock Exchange during Friday's afternoon deals.