1 min read.Updated: 06 Aug 2021, 03:42 PM ISTLivemint
Hindalco Q1 results were driven by a strong performance by Novelis and India Business, supported by favorable macros, strategic product mix, and stability in operations, the company said
Hindalco, the Aditya Birla Group metals flagship, on Friday said that the company has reported an all-time high consolidate Q1 net profit at ₹2,787 crore, as compared to a loss of ₹709 crore in Q1FY21. The company said that the results were driven by a strong performance by Novelis and India Business, supported by favorable macros, strategic product mix, and stability in operations.
Novelis reported an all-time high quarterly EBITDA, as a result of upswing in demand for innovative and sustainable aluminium products and an outstanding operational performance, it added.
The company's total revenue from operations stood at ₹41,358 crore, up 64% as compared to ₹25,283 crore in the year-ago quarter. Hindalco also said that its consolidated EBITDA was all-time high at ₹6,790 crore, up 188% YoY and 16% QoQ.
Novelis and Aluminium India Business drive its highest-ever quarterly net profits. EBITDA for Aluminium India was at an all-time high of ₹2,352 crore in Q1 FY22, compared with ₹973 crore for Q1FY21. Aluminium India Business recorded metal production of 319 Kt vs 291 Kt in the corresponding period.
Gross debt declined by ₹16,345 crore and net debt fell by ₹10,389 crore as of June 30, 2021 from its peak on June 30, 2020. Consolidated net debt to EBITDA ratio improved further to 2.36x on June 30, 2021, Hindalco said in the exchange filing.
Commenting on the results, Satish Pai, Managing Director, Hindalco Industries said, “This quarter we delivered record-breaking financial results despite the impact of the Covid second wave. Our robust financial performance, accelerated pace of deleveraging and the increasing strength of our balance sheet has been recognised by the market and is reflected in credit rating upgrades for both Novelis and Hindalco. The improvement is visible across all our business segments where we are seeing strong demand, plants running at capacity, and better margins..''
Shares of Hindalco were 0.4% lower at ₹440 per share on the BSE on Friday.