Hindalco Industries reported a 32% rise in profit for Q4, boosted by strong margins and high volumes. The company’s revenue for the quarter was flat year-on-year at ₹55,994 crore.
The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) for Q4FY24 increased by 24% to ₹7,201 crore, thanks to lower input costs and higher volumes.
Satish Pai, Managing Director of Hindalco, stated that the demand for copper and aluminium in India remains strong. “As long as we avoid supply disruptions during the monsoon and commodity prices stay favorable, we expect another good year,” he said.
Hindalco’s consolidated net debt to EBITDA ratio improved to 1.21 times as of March 31, 2024, from 1.39 times a year earlier. Pai highlighted the company’s solid financial position and liquidity after repaying ₹5,195 crore of debt in the Hindalco India business during the year. This strong balance sheet supports the company’s growth plans with prudent capital allocation.
Strategic Investments and Growth Plans
The company has earmarked ₹6,000 crore for capital expenditure in FY25. “This year, instead of repaying debt, we plan to invest in growth projects like the alumina refinery, copper recycling, and aluminium battery foil,” said Pai. Hindalco is also completing the expansion of its flat-rolled products (FRP) project in Lapanga, Odisha, set to be finished by December.
Strong Performance in Copper and Aluminum Industries.
For Q4, copper revenue increased by 20% year-on-year to ₹13,424 crore. Strong operations and sales in the copper business led to a record EBITDA of ₹776 crore, up 30%. The aluminium upstream business reported an EBITDA of ₹2,709 crore with margins at 32%, driven by higher volumes and cost optimization.
“The copper business has become the second largest globally for copper rods (excluding China) and achieved its best-ever performance with sales exceeding 500,000 tonnes and record EBITDA for the quarter and the year,” added Pai.
In Q4, Hindalco’s raw material costs were slightly down at ₹32,758 crore.
The company’s overseas subsidiary, Novelis, which is preparing for an IPO, reported revenue of ₹33,859 crore, down 6.4% from ₹36,176 crore a year ago due to lower aluminium prices. However, Novelis’ EBITDA per tonne increased by 25% to $540.
The Novelis project in Bay Minette, USA, is on track and expected to be completed by the second half of 2026.
Pai expects Hindalco’s production costs to decrease in the first quarter of FY25. For the full fiscal year 2024, Hindalco’s consolidated revenue from operations fell by 3.24% to ₹215,962 crore, while profit slightly increased to ₹10,155 crore.
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