Hindalco Industries Q1 results fy22-2023 PAT up by 48% to Rs. 4119 Crorers

10 August 2022
4 min read

The Indian aluminium and copper manufacturing company, Hindalco Industries announced its financial results for the first quarter of FY23 on 10th August 2022. The company reported its profit after tax (PAT) at Rs. 4,119 crore in Q1 FY23, up 48% YoY from Rs. 2,787 crore in Q1 FY22. 

Consolidated revenue from operations of the company stood at Rs. 58,018 crore in Q1 FY23, up 40% YoY from Rs. 41,358 crore in Q1 FY22. 

Hindalco reported an all-time high EBITDA of Rs. 8,640 crore in Q1 FY23, up 27% YoY from Rs. 6,790 crore in Q1 FY22. The excellent results were driven by better macros, robust performance of the Aluminium Downstream and Copper businesses, along with better operating efficiencies. Consolidated Net Debt to EBITDA ratio remained strong at 1.40x for the quarter ended June 30, 2022, as compared to 2.36x in the year ago period.

Looking at the segment-wise performance, the Novelis business reported its best ever quarterly adjusted EBITDA of $56.1 crore, up 1% YoY from $55.5 crore in Q1 FY22. This was primarily due to higher product pricing, favourable product mix, and higher recycling benefits.

The Aluminium Upstream EBITDA stood at Rs. 3,272 crore in Q1 FY23, as against Rs. 2,317 crore in Q1 FY22, recording an increase of 41% YoY. As per the company’s management, this was on account of favourable macros, higher volumes, and better operational efficiencies, that were partially offset by higher input costs. Upstream EBITDA margin was recorded at 38%. 

Aluminium Downstream EBITDA stood at Rs. 158 crore in Q1 FY23, recording a massive increase of 305% YoY from Rs. 39 crore in Q1 FY22. This jump was attributed to better pricing of downstream products. 

EBITDA of the Copper business stood at a record Rs. 565 crore in Q1 FY23 compared to Rs. 261 crore in Q1 FY22, up 116% YoY. This was on the back of higher domestic sales, better operational efficiencies, and improved by-product margins. Revenue from the Copper Business was recorded at Rs. 10,529 crore during this quarter, up 48% YoY. This was on account of higher global prices of copper and higher volumes. 

The earnings per share (EPS) of the company stood at Rs. 18.5 in this quarter, up 48% YoY from Rs. 12.5 in the same quarter of the previous year. The Hindalco share reacted positively to the result announcement, and was trading at a high of Rs, 435.6 per share, up 3.37% around 2:10 pm when the results were declared in the market hours. 

Hits of Hindalco Results

  • Profit after tax stood at Rs. 4,119 crore in Q1 FY23, up 48% YoY.
  • Consolidated revenue from operations of the company stood at Rs. 58,018 crore in Q1 FY23, up 40% YoY.
  • Hindalco reported an all-time high EBITDA of Rs. 8,640 crore in Q1 FY23, up 27% YoY.
  • Consolidated Net Debt to EBITDA ratio remained strong at 1.40x in Q1 FY23. 
  • Novelis business reported its best ever quarterly adjusted EBITDA of $56.1 crore, up 1% YoY.
  • The Aluminium Upstream EBITDA stood at Rs. 3,272 crore in Q1 FY23, up 41% YoY. 
  • Aluminium Downstream EBITDA stood at Rs. 158 crore in Q1 FY23, up 305% YoY.
  • EBITDA of the Copper business stood at Rs. 565 crore in Q1 FY23, up 116% YoY. 
  • EPS stood at Rs. 18.5 in this quarter, up 48% YoY. 

Segment-wise revenue of Hindalco Q1 Results 

  • Novelis: Revenue up 32% YoY to $51 lakhs in Q1 FY23 from $39 lakh in Q1 FY22. 
  • Aluminium (upstream): Revenue up 41.42% YoY to Rs. 8,699 crore in Q1 FY23 from Rs. 6,151 crore in Q1 FY22. 
  • Aluminium (downstream): Revenue up 19.49% YoY to Rs. 2,740 crore in Q1 FY23 from Rs. 2,293 crore in Q1 FY22. 
  • Copper: Revenue up 48% YoY to Rs. 10,529 crore in Q1 FY23. 

What the management says about the results

Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries, said: “After the record profitability of the fourth quarter, I am pleased to share that we delivered an even stronger first quarter despite rising input costs and inflationary pressures. Our performance was backed by strong operational efficiencies and pre-emptive sourcing of critical raw material, thus ensuring stable operations and higher margins. Our business model supports our position as an integrated aluminium producer with one of the world’s best EBITDA margins. Our product mix enhancement strategy is working well with the Aluminium Downstream EBITDA growing four-fold YoY. Novelis reported its highest ever EBITDA per ton driven by higher product pricing, favourable product mix and higher recycling benefits. Looking ahead, we remain focused on riding all market cycles with our greener, stronger, smarter approach.”

Other things to know

  • Additional 350 Kt expansion via debottlenecking at Utkal Alumina remained in progress.
  • Novelis’ business commenced ~$34 lakh worth strategic capital investment projects. 
  • Hindalco signed an MoU with Phinergy, a leading Israel-based pioneer in metal-air battery technology, and IOC Phinergy Private Limited (IOP), for R&D and pilot production of aluminium plates for Aluminium-Air batteries. 
Do you like this edition?
LEAVE A FEEDBACK
ⓒ 2016-2022 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 3.4.0
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  ICICI PRUDENTIAL |  HDFC |  NIPPON INDIA |  ADITYA BIRLA SUN LIFE |  SBI |  UTI |  FRANKLIN TEMPLETON |  KOTAK MAHINDRA |  IDFC |  DSP |  AXIS |  TATA |  L&T |  SUNDARAM |  PGIM |  INVESCO |  LIC |  JM FINANCIAL |  BARODA PIONEER |  CANARA ROBECO |  HSBC |  IDBI |  INDIABULLS |  MOTILAL OSWAL |  BNP PARIBAS |  MIRAE ASSET |  PRINCIPAL |  BOI AXA |  UNION KBC |  TAURUS |  EDELWEISS |  NAVI |  MAHINDRA |  QUANTUM |  PPFAS |  IIFL |  Quant |  SHRIRAM |  SAHARA |  ITI