Hindalco Industries reported 66% jump in a net profit for the fiscal fourth quarter at Rs 5, 254 crore as compared to Rs 3, 174 crore at the end of Q4FY24, beating Bloomberg estimates of Rs 4, 335 crore. The aluminium and copper company’s revenue from operations jumped to Rs 64, 890 crore in the March quarter, up 15.9% annually from Rs 55, 994 crore in Q4FY24. The firm’s revenue from operations was also ahead of analyst estimates of Rs 59, 251 crore.
Earnings before interest, taxation, depreciation, and amortisation (Ebitda) for the quarter was Rs 10, 296 crore, ahead of Bloomberg estimates of Rs 8, 048 crore, and up 43% from Q4FY24’s Rs 7, 201 crore benefitting from lower input coal costs in the quarter.
The firm’s leadership attributed its financial performance to it’s integrated business model which includes downstream and upstream functions. India business PAT was Rs 3, 208 crore showing a jump of 63% annually, the company said in its earnings presentation. Revenues at Rs 26, 067 crore were up 14% annually, while Ebitda at Rs 5, 671 crore was up 56%.
“Our Aluminium upstream business in India remained a strong anchor, complemented by robust growth in the downstream business. The Copper business achieved a record Ebitda backed by strong value-added product sales. Despite tighter scrap spreads, Novelis delivered a resilient performance through increased beverage can shipments,” Satish Pai, managing director at Hindalco said.
The firm’s US subsidiary, Novelis, reported revenue of $4.6 billion, up $4.1 billion in the same quarter last year, driven by higher average aluminium prices. Business segment Ebitda for the subsidiary was down 8% at $473million also affected by higher aluminium scrap prices and higher operating cost, partially offset by higher product pricing.
Novelis PAT was up 77% annually at $294 million driven by favourable metal price lag, gains in unrealised derivatives, and a lower income tax provision. Shipments for the fiscal fourth quarter were up 1% annually at 951 kilotonne (KT).
Hindalco’s aluminium upstream segment reported revenue of Rs 10, 311 crore, up 22% annually from Rs 8, 469 crore in the same period last year. Meanwhile, aluminium downstream reported revenue of Rs 3, 595 crore up 23% from Rs 2, 920 crore in the fourth quarter of FY24. The copper segment posted revenue of Rs 14, 565 crore versus Rs 13, 424 crore in the same quarter previous year.
Aluminium upstream Ebitda was Rs 4, 838 crore, up 79% annually, while downstream aluminium Ebitda at Rs 219 crore was up 52% year on year. Copper business Ebitda was down 21% at Rs 614 crore. “We expect downstream volumes to rise in FY26, though one needs to watch out for LME prices since we are seeing them (trend) lower in Q1(FY26) than Q4(FY25),” Pai added.
Upstream aluminium shipments were down 2% on an annual basis at 332 KT against 337 KT in Q4FY24. Downstream aluminium shipments at 105 KT were flat year on year as were copper shipments at 135 KT.
The board has proposed a dividend of Rs 5 per share. Shares of Hindalco rose 0.71% to Rs 662.7 per share on the BSE on Tuesday. Results were announced during market hours.