Home / News / India /  Hindalco Q3 profit sinks 63% YoY to 1,362 cr, revenue up 6% on higher volumes

Aditya Birla Group's metals flagship Hindalco Industries on Thursday reported a consolidated net profit for the December quarter at 1,362 crore, down 63% year-on-year. The same was 3,675 crore in the corresponding quarter of last year.

Hindalco's revenue from operations came in at 53,151 crore, up 6% on-year as against 50,272 crore in the same quarter of last year. The revenue was driven by higher volumes and steady operational performance across India operations.

The sharp drop in the bottomline was due to weak operational performance. The aluminium manufacturing company reported a 48% drop in operating profit at 3,930 crore, Hindalco said in a regulatory filing.

Hindalco Managing Director, Satish Pai said: "We are seeing core industries worldwide being buffeted by macro-economic and inflationary cost pressures, yet we delivered a strong operational performance with higher volumes across India business segments."

The global aluminium major's upstream aluminium business reported an operating profit of 1,591 crore, with a margin of 19.8%.

The downstream aluminium business reported a 24% YoY growth in operating profit to 157 crore, while the operating profit per tonne improved 7% to $210 on -year.

The copper business reported a 40% on-year growth in quarterly operating profit at 546 crore. Meanwhile, copper rod sales hit an all-time high in the quarter under review.

"Though the India Aluminium upstream business EBITDA came under pressure from the surge in input costs and lower realisations, this was partially offset by higher volumes. The India Aluminium downstream business segment delivered a higher EBITDA YoY, due to higher volumes and better pricing. The Copper business registered a 40% growth in EBITDA driven by higher volumes and better realisations, supported by a robust domestic demand," Pai said.

The poor earnings saw Hindalco Industries Ltd's stock briefly slip into the red and hit a low of 431.75. However, shares rose 0.55% and are currently trading at 438.90 apiece on NSE in noon deals.

Meghna Sen
Meghna Sen is a deputy chief content producer at Livemint where she tracks markets, companies. She has 6 years of experience with online and print publications. Email: meghnasen08@gmail.com
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