Hindalco Industries reported a strong first quarter performance this fiscal, beating analyst estimates. Its quarterly performance was supported by good earnings from its US-based subsidiary, Novelis and a sharp increase in aluminium and copper prices, amidst a surging global demand for metals.
The Aditya Birla Group company recorded its highest-ever quarterly net profit on a consolidated basis at Rs 2,787 crore for the quarter ended June 30, 2021. It had reported a consolidated net loss of Rs 709 crore in the corresponding quarter last year, which was its highest quarterly net loss ever.
Its consolidated revenues from operations during the quarter were up 63.6% y-o-y at Rs 41,358 crore. The company’s consolidated EBITDA (earnings before interest, tax, depreciation and amortisation) was up 188% y-o-y to Rs 6,790 crore, as operating income surged both at Novelis and in the India business.
Novelis recorded its best-ever quarterly adjusted EBITDA of $ 555 million, up 119% y-o-y, on the back of higher volumes, favourable product mix and metal benefits, and a $47 million gain related to a favourable decision in a Brazilian tax litigation. Its adjusted EBITDA per tonne of $570 during the quarter was up 75% y-o-y.
A sharp surge in aluminium prices resulted in an all-time high EBITDA in the India aluminium business, which jumped 142% to Rs 2,352 crore during the quarter.
Operating income for the copper business was also up sharply by 295% y-o-y to Rs 261 crore. Revenues from the copper business at Rs 7,094 crore this quarter, was higher by 134% y-o-y, primarily due to higher global prices of copper. The company’s gross debt declined by Rs 16,345 crore and net debt fell by Rs 10,389 crore as of June 30, 2021, from its peak on June 30, 2020.