InvestorQ : How did Hindalco report such big growth in profits and sales in the Sep-21 quarter?
vidhya Laxmi made post

How did Hindalco report such big growth in profits and sales in the Sep-21 quarter?

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sarah Leo answered.
3 weeks ago
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For the quarter ended in September 2021, the metal business of Aditya Birla Group, Hindalco, reported 52.6% surge in total revenues at Rs.47,665 crore on a consolidated basis. If you look at the major verticals of Hindalco, Novelis revenues grew by 37.5% at Rs30,512cr. the domestic business grew 63% at Rs.7,812 crore, while the copper business of Hindalco grew 101% and more than doubled to Rs.9,587 crore. Overall a robust story it was.

Novelis contributed the highest EBIT in the quarter at Rs.4,100 crore while the domestic aluminium business followed with EBIT at Rs.3,247 crore. Hindalco reported 783% growth in net profits or an 8.8-fold growth to Rs.3,417 crore. In fact, Hindalco EBITDA at Rs.8,048 crore for the quarter was a record and also the net profit at Rs3,417cr was a record. Novelis had an adjusted EBITDA of $571/tonne. India aluminium reported EBITDA margins of 42%.

Net margins for the Sep-21 quarter came in at 7.17% as against a much lower 1.24% NPM in the Sep-20 quarter and a moderately comparable 6.74% in the Jun-21 quarter. However, the sharp growth in profit scan also be attributed to the Rs.1,676 crore write-off that Hindalco took in Sep-20 quarter on account of losses of the discontinued operations. If you factor that out, then the profits would still have doubled yoy, which is a commendable growth.

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