Hindalco Industries Q4FY23 Results: Net profit down 37% at ₹2,411 crore; declares dividend
2 min read 24 May 2023, 02:29 PM ISTHindalco Industries Q4FY23 Results: The company on Wednesday reported an 37% year-on-year fall in its consolidated net profit (attributable to owners of the company) for the fiscal's fourth quarter ended March (Q4FY23) to ₹2,411 crore.
PremiumHindalco Industries Ltd on Wednesday reported an 37% year-on-year fall in its consolidated net profit (attributable to owners of the company) the fiscal's fourth quarter ended March (Q4FY23) to ₹2,411 crore. The company had reported a profit of ₹3,851 crore in the year-ago period. Sequentially, the consolidated net profit was up 77%. At 14:19 IST, Hindalco Industries Ltd share price was trading at ₹409.40 apiece, down 0.20% on BSE.
According to the company's exchange filing, the sequential growth of 77% was driven by the India business's solid operational performance and sustained focus on cost reduction.
The company's consolidated revenue from operations stood at ₹55,857 during the quarter ended March from ₹55,764 crore in Q4FY22. Sequentially, up 5.1% from ₹53,517 crore in Q3FY23.
The company reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of ₹5,818 crore (vs. ₹7,597 crore) in Q4 FY23, down 23% YoY, due to higher input costs and unfavourable macroeconomic conditions, which were partially offset by better operational performance of Copper Business.
EBITDA increased 48% sequentially because to improved performance from Novelis and the India Aluminium and Copper Business, said the company in an exchange filing.
On the standalone basis, the metals flagship company of the Aditya Birla Group company's net profit for Q4FY23 stood at ₹832 crore from ₹1,601 crore in Q4FY22, down 48% year-on-year. The revenue from operations during the quarter rose 5.4% to ₹19,995 crore from 18,969 crore in Q4FY22.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) was down nearly 45.6% on-year to ₹1,775 crore, and operating margin fell by 830 basis points to 8.9%.
"Our diversified business model continues to drive Hindalco’s resilient performance in challenging times. Our Copper Business delivered exceptional results recording its highest-ever EBITDA, driven by robust market demand, stable operations and higher value-added product sales. Our India Aluminium Downstream Business, which experienced its highest-ever EBITDA growth in FY23, reflects our strategic focus on enhancing this segment. Despite macroeconomic headwinds, Novelis has shown quarter-on-quarter recovery supported by improved product pricing and favourable product mix.
Looking ahead, a Net-Debt-Free India business and a strong balance sheet will continue to power our ambitions for organic growth," said Satish Pai, Managing Director, of the company in a press release.
The company's net debt stood at ₹33,959 crore as of March 31, 2023 as against ₹41,716 crore as of December 31,2022.
The board of directors of the company have recommended a dividend of ₹3 per equity share of Re 1 each for the year ended March.
