- Hindalco posted consolidated net profit of Rs 7,013 crore in Q1, beating estimates
- Revenue rose 8.6% sequentially to Rs 84,825 crore, slightly below estimates
- EBITDA jumped 39.1% to Rs 13,932 crore with margin expanding to 16.4%
Hindalco Industries reported a stellar performance for the June quarter, with consolidated net profit and operating earnings comfortably surpassing Street expectations, driven by a sharp expansion in margins and robust performance across its aluminium business.
The Aditya Birla Group company posted a consolidated net profit of Rs 7,013 crore for the first quarter, significantly ahead of the Bloomberg consensus estimate of Rs 5,614 crore. Profit also surged from Rs 2,597 crore in the previous quarter. Revenue from operations rose 8.6% sequentially to Rs 84,825 crore from Rs 78,133 crore. However, the top line came in slightly below analysts' estimate of Rs 86,476 crore.
Operating performance was the standout, with Ebitda jumping 39.1% quarter-on-quarter to Rs 13,932 crore from Rs 10,018 crore, comfortably beating the Street estimate of Rs 11,011 crore. Ebitda margin expanded sharply to 16.4% from 12.8% in the March quarter, well above analysts' expectation of 12.7%, reflecting stronger operating efficiencies and improved profitability.
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Hindalco continued to be impacted by one-time items during the quarter, although the exceptional loss narrowed substantially. The company reported a one-time loss of Rs 2,300 crore compared with a one-time loss of Rs 4,171 crore in the previous quarter.
The company's aluminium upstream business also delivered a strong performance, with earnings rising 17% sequentially to Rs 13,403 crore, supporting the overall improvement in consolidated profitability.
Hindalco Share Price Today
After the results were announced Hindalco Industries shares rose 2.73% higher at Rs 1,055 per share on Friday. However as of 3:00 p.m. the shares pared some gains and was trading 1.89% higher at Rs 1,046.40 apiece. The shares have risen 7.2% in one week and 7.75% in one month. The shares are up 16.72% year-to-date and 52.10% in the last one year.
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