InvestorQ : How were the Hindalco Industries results for the Dec-21 third quarter?
Katherine Gonsalves made post

How were the Hindalco Industries results for the Dec-21 third quarter?

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rhea Babu answered.
3 months ago
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The last few quarters have been extremely favourable for Hindalco and Dec-21 quarter was no exception. Hindalco again posted record numbers for Dec-21 quarter. The Canadian Novelis business and the India aluminium business may have been flat in terms of top line but they gained from operating efficiencies and working capital efficiencies. Here is a summary of Hindalco numbers with focus on India aluminium, Novelis and copper business.

Hindalco Ltd

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income (Rs cr)

₹ 50,272

₹ 34,958

43.81%

₹ 47,665

5.47%

Operating Profit (Rs cr)

₹ 7,580

₹ 5,418

39.90%

₹ 7,702

-1.58%

Net Profit (Rs cr)

₹ 3,675

₹ 1,877

95.79%

₹ 3,417

7.55%

Diluted EPS (Rs)

₹ 16.50

₹ 8.44

₹ 15.34

Operating Margins

15.08%

15.50%

16.16%

Net Margins

7.31%

5.37%

7.17%

Hindalco reported 43.8% higher net sales at Rs.50,272 crore for the Dec-21 quarter on a yoy consolidated basis. The Canadian Novelis business reported flat shipments at 930KT due to the ongoing semiconductor shortage. The India aluminium business saw sales of aluminium metal about 3% higher at 325 KT in the quarter. There was an 8% growth in sales of value added products or VAP aluminium at 86 KT. In copper vertical, cathode production doubled to 102 KT while overall metals sales volumes climbed 50% at 110KT.

Operating profits of Hindalco were up 39.9% at record levels of Rs.7,580 crore. Novelis EBITDA was 15% higher at $506 million with EBITDA/tonne at $544. India aluminium business saw record 131% surge in EBITDA to Rs.3,376 crore, on the back of better operational efficiencies and superior downstream performance as well as product mix. Copper EBITDA was up 63% yoy at Rs.390 crore on improved product realizations. EBITDA margins surged from 28% to 41% in Dec-21 quarter on operating efficiency boost.

Net profits for the Dec-21 quarter were up 96% at a record Rs3,675 crore. One thing is that the dividends of operating efficiencies and better product mix favouring downstream products got transmitted. Global aluminium prices rallied 44% on the LME from $1,916/tonne to $2,762/tonne. PAT margins for Hindalco improved from 5.37% in the Dec-20 quarter to 7.31% in the Dec-21 quarter. Even the high frequency momentum was favourable with the PAT margins higher by 14 bps on a sequential basis.

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