InvestorQ : How did Hindalco manage to report robust profit growth in the June quarter?
Rashi Mehra made post

How did Hindalco manage to report robust profit growth in the June quarter?

Answer
image
Rashi Mehra answered.
1 month ago
Follow

Hindalco sprang a positive surprise in the June 2022 quarter as it reported 47.7% spike in net profits at Rs4,119 crore despite input cost pressures. This was on the back of strong operational efficiencies. The profits of Hindalco for the June quarter were nearly 50% higher than analyst estimates. Sales revenues for the quarter were up 40% yoy at Rs58,020 crore.

One big advantage was that the aluminium prices surged higher yoy. However, Hindalco has also been facing supply chain constraints in the industry like lower output in Europe and soaring energy costs, which has taken a toll on the profits. Copper, another key business unit, saw revenues surge by 48% at Rs10,529 crore. Novelis, the Canadian arm of Hindalco, saw sales grow by a healthy 32% and net income was $307 million. Net debt of Hindalco overall fell 19% to Rs42,193 crore.

3 Views