Hindalco's Q4 net profit jumps 100% to Rs3,850 crore
31 May 2022
Aditya Birla Group company Hindalco Industries Limited has announced a 100 per cent surge in its consolidated net profit at Rs3,850 crore in fiscal fourth quarter ended March 2022 as against Rs1,928 crore announced in the previous financial year. The aluminium and copper manufacturing company saw a 4.8 per cent increase in profit from Rs3.675 crore earned during the October-December quarter.
Hindalco’s consolidated net revenue for the quarter increased by nearly 38 per cent year-on-year to Rs55,764 crore. Net revenue for the quarter increased by 11 per cent compared to the previous quarter to Rs50,272 crore, while consolidated net profit of Hindalco recorded a growth of nearly 300 per cent to Rs13,730 crore from Rs3,483 crore reported in the financial year 2020-21
The company's EBITDA was at an all-time high of Rs 4,050 crore in Q4FY22, compared with Rs 1,819 crore for Q4FY21, an increase of 123 percent YoY, primarily due to favourable macros, higher volumes, better operational efficiencies, and improved performance of downstream business offset by higher input costs.
EBITDA margins were at 41 per cent and continue to be the best in the industry. Revenue rose to Rs9,847 crore in Q4FY22 compared to Rs5,969 crore in the prior-year period.
EBITDA for the copper business stood at Rs387 crore in Q4FY22 compared to Rs322 crore in Q4FY21, up 20 per cent YoY, on the back of better operational efficiencies and improved by-product realisations.
Revenue from the copper business for the quarter stood at Rs9,787 crore, up 15 per cent YoY, primarily due to higher global prices of copper and higher volumes.
The board of directors of Hindalco has recommended a dividend of 400 per cent or Rs4 per Re1 share for current financial year as against 300 per cent or Rs3 per share in the previous financial year.
The dividend is subject to the approval of shareholders at the ensuing annual general meeting of the company.
Mumbai, Maharashtra-based Hindalco, is a $18 billion metals powerhouse and a leader in aluminium and copper. Hindalco's acquisition of Aleris Corporation in April 2020, through its subsidiary Novelis Inc, has cemented the company's position as the world's largest flat-rolled products player and recycler of aluminium.
"With record profitability in the fourth quarter, we had a very good end to the year. We attribute Hindalco’s highest-ever profits not just to strong macros, but also our consistent focus on operational excellence and cost optimisation," Satish Pai, managing director of Hindalco Industries, said.
"We continue to remain one of the world’s lowest-cost and highest EBITDA margin producers of aluminium. Our strategy to build a more sustainable business model that is isolated from metal cycles is working very well for us. In line with this, we have allocated over 70% of our growth capex to value-enhancing downstream segments. All our growth capex for the next five years will be funded out of internal accruals," he added.