Hindalco Q3 Results: Profit Rises 71%, Misses Estimates On Impairment Loss

The aluminium producer's net profit saw a 71.1% increase year-on-year to Rs 2,331 crore in the October-December quarter.

<div class="paragraphs"><p>(Source: Hindalco Industries website)</p></div>
(Source: Hindalco Industries website)

Hindalco Industries Ltd.'s profit rose in the third quarter of fiscal 2024, but failed to surpass market expectations.

The aluminium producer's net profit saw a 71.1% increase year-on-year to Rs 2,331 crore in the October-December quarter, according to an exchange filing on Tuesday. This compares with the Rs 2,394.8-crore consensus estimate of analysts tracked by Bloomberg.

The company failed to surpass estimates on account of high impairment loss of Rs 177 crore, as compared with an impairment loss of Rs 16 crore in the corresponding quarter last year.

Hindalco Industries Q3 FY24 (Consolidated, YoY)

  • Revenue declined 0.65% to Rs 52,808 crore vs Rs 53,151 crore (Bloomberg estimate: Rs 48,117.4 crore).

  • Ebitda up 65.3% at Rs 5,865 crore vs Rs 3,548 crore (Bloomberg estimate: Rs 5,584.1 crore).

  • Ebitda margin at 11.11% vs 6.67% (Bloomberg estimate: 11.6%).

  • Reported profit up 71.1% at Rs 2,331 crore vs Rs 1,362 crore (Bloomberg estimate: Rs 2,394.8 crore).

Segmentwise Results

  • Novelis: Hindalco's American subsidiary's Ebitda rose 33% to Rs 2,848 crore. Shipments remained flat at 910 kilo tonne.

  • Aluminium Upstream: The upstream segment's operational earnings rose 54% in the third quarter to Rs 2,443 crore. Shipments fell 1% to 333 kilo tonne.

  • Aluminium Downstream: Operating profit for the downstream segment decreased 34% to Rs 103 crore. Shipments remained flat at 90 kilo tonne.

  • Copper: Ebitda rose 20% to Rs 656 crore. Shipments increased 9% to 119 kilo tonne.

Ebitda per tonne for its American subsidiary Novelis rose by 33% to $499 per tonne, in line with its guidance of $450-$500 per tonne in Q3 FY24 and $525 per tonne in Q4.

Ebitda per tonne for its upstream aluminum business rose 53% to $880 per tonne, driven by lower input costs. For the downstream business, it fell 35% to $137 per tonne, majorly impacted by unfavourable product mix and lower realisations.

Shares of Hindalco Industries declined 12.4% from the previous close of Rs 510.25 apiece after the results were announced, as compared with a 0.48% advance in the NSE Nifty 50 at 2:12 p.m.

Here's Why Hindalco Industries Shares Plunged 14%