Hindalco Q3 net profit almost doubles, revenue jumps 44%
Hindalco Industries Ltd on Thursday said consolidated net profit for the third quarter of 2021-22 almost doubled from a year earlier thanks to strong performances by its Novelis unit and its India business.
Net profit jumped 96% to Rs 3,675 crore for the third quarter from Rs 1,877 crore for the corresponding period a year earlier, the Aditya Birla Group’s aluminium and copper producing company said.
Hindalco said this was the highest-ever profit it has clocked in a quarter.
Hindalco also posted a steep 44% rise in revenue from operations during the quarter ended December 2021 to Rs 50,272 crore from Rs 34,958 crore a year earlier.
Other key highlights
1) Consolidated operating profit up 38% on a year-on-year basis to Rs 7,624 crore, helped by India aluminium business.
2) Indian aluminium operations reported their highest-ever quarterly operating profit of Rs 3,376 crore, up 131% on-year.
3) Overall consolidated operating margins in the quarter shrank to 15.16% from 15.79% in the year-ago quarter.
4) Domestic copper business sales jumped 67% year-on-year to Rs 10,255 crore.
5) Novelis reported 33% year-on-year growth in revenue to $4.3 billion and a record quarterly operating profit of $506 million.
The results were driven by a consistent performance by Novelis and “an exceptional performance” by the India business, the company said. This was supported by a favorable macroeconomic environment, strategic product mix, and improved performance by the downstream business, Hindalco said.
“Our sustained performance and strong balance sheet are driving our plans for further organic capex," said Hindalco MD Satish Pai.
“We have already announced over Rs 3,000 crore investments in our downstream pipeline – Hirakud and Silvassa, and the acquisitions of Ryker and Hydro’s Kuppam units,” he said.
“Novelis, too, has announced capital projects that align market growth with sustainability considerations. An example is the $365 million closed-loop recycling and casting centre for the North American market,” he added.
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