Hindalco’s net tripled to Rs 1,928 crore, boosted by Novelis activities
Hindalco Industries beat analyst estimates on all fronts, reporting an almost tripling year-over-year increase in its consolidated net profit of Rs 1,928 crore for the quarter ended March 31, 2021. Profits were drawn by strong performances in the United States. -arm Novelis and the aluminum activities in India in the context of a sharp rise in aluminum prices around the world.
The company’s consolidated operating income increased 38% year-on-year to Rs 40,507 crore during the quarter. There was a sharp increase in consolidated EBITDA (earnings before interest, taxes, depreciation and amortization), which climbed 40% year-on-year to Rs 5,845 crore, thanks to a record performance of the aluminum activity in India and Novelis.
“The results were driven by a strong performance from the aluminum businesses of Novelis and India, supported by higher volumes and a better product mix, lower input costs, stable operations and shares of cost reduction, ”a company statement said.
Novelis reported its best quarterly adjusted operating income of $ 505 million, up 32% year-on-year thanks to higher organic volume, favorable metal benefits and a $ 60 million contribution to the EBITDA of the activity acquired from Aleris. Adjusted EBITDA per tonne increased 9% year-over-year to $ 514.
Business in India also posted a record quarter of profits. India’s aluminum industry’s EBITDA hit a record high of Rs 1,610 crore in the quarter, up 54% year-on-year. The EBITDA margin of 27% was the highest in the last 12 quarters. Although aluminum metal production at 316 KT was 3% lower year on year, aluminum metal sales increased 5% to 329 KT in the quarter.
Revenues from the copper business were favorably impacted by the rise in global copper prices, which were up 80% year-on-year to Rs 8,508 crore. However, the company’s EBITDA fell 33% to Rs 269 crore.
Commenting on the performance, Satish Pai, Managing Director of Hindalco, said: “Our record fourth quarter results have further strengthened our balance sheet, absorbing the acquisition of Aleris and restoring the net debt to consolidated EBITDA ratio to prior levels. ‘acquisition. In the fourth quarter, our activities in India continued to grow with demand above pre-Covid levels ”.
Hindalco’s gross debt decreased by Rs 18,187 crore and net debt fell by Rs 14,883 crore as of March 31, 2021, from its peak on June 30, 2020. Consolidated net debt / EBITDA ratio has improved significantly to 2.59 times as of March 31. a peak of 3.83 times on June 30, 2020.
The company said Aleris integration work continues with operating rate combination cost synergies of $ 79 million realized through the end of the fourth quarter of fiscal year. The inauguration of Novelis’ new $ 325-375 million Cold Mill project in Zhenjiang, China is expected in mid-FY22. In addition, expansion of Novelis’ recycling, molding and laminating facilities in Pinda, Brazil is on track, with commissioning expected by the end of fiscal year 22.