Hindalco Q4 Results 2022: Net profit grew by 99.74% for Q4FY22

On 26th May 2022, Hindalco announced its quarterly results for the last quarter of FY2022.

Key Highlights:

Q4FY22:

- The company's revenue rose 37.66% to Rs.55764 crores in the quarter under review from Rs.40507 crores in the same quarter last fiscal.

- The company's EBITDA rose 29.97% to Rs.7597 crores in the quarter under review from Rs.5845 crores in the same quarter last fiscal

- Hindalco reported a net profit of Rs.3851 crores from Rs.1928 crores in Q4FY21, a growth by 99.74%

FY2022:

- The company's revenue rose 47.78% to Rs.195059 crores in FY22 from Rs.131985 crores in FY21.

- The company's EBITDA rose 59.06% to Rs.30056 crores in FY22 from Rs.18896 crores in FY21

- Hindalco reported a net profit of Rs.13730 crores from Rs.3483 crores in Q4FY21, a growth of 294.2%

Business Highlights:

Novelis:

- Novelis reported quarterly adjusted EBITDA of $431 million (vs $505 million), down 15% YoY, primarily due to cost inflation, semiconductor chip shortage in automotive and other short-term operational issues, and a non-recurring regulatory provision was taken in the quarter. 

- Novelis reported an Adjusted EBITDA per ton of $437 in Q4 FY22, compared to $514 in the prior year. 

- Novelis’ Net Income from continuing operations was $217 million, up 21% YoY, mainly driven by lower interest expense in Q4 FY22. 

- Revenue was $4.8 billion (vs $3.6 billion), up 34% YoY, driven by higher global aluminum prices. Total shipments of flat-rolled products (FRPs) were up at 987 Kt vs 983 Kt in Q4 FY21.

Aluminum India:

- EBITDA was at an all-time high of ₹4,050 crore in Q4 FY22, compared with ₹1,819 crore for Q4 FY21, an increase of 123% YoY, primarily due to favorable macros, higher volumes, better operational efficiencies, and improved performance of downstream business offset by higher input costs. 

- EBITDA margins were at 41% and continue to be the best in the industry. Revenue was ₹9,847 crore in Q4 FY22 vs ₹5,969 crore in the prior-year period. 

- Aluminum India Business recorded metal production of 326 Kt vs 316 Kt in the corresponding quarter. Aluminum metal sales were up 2% YoY at 336 Kt vs 329 Kt in the prior year. Aluminum VAP (excluding wire rods) sales volumes were at a record 93 Kt (vs 92 Kt), up 1% YoY, driven by the recovery of the domestic market. VAP sales, as a percentage of total metal sales, were at 28% this quarter which was the same as the prior-year quarter

Copper: 

- Copper Cathode production was at 94 Kt in Q4 FY22 (vs 97 Kt in Q4 FY21) while copper rod production was 69 Kt in Q4 FY22 (vs 76 Kt in Q4 FY21). Overall copper metal sales were at 105 Kt (vs 107 Kt in Q4 FY21), Copper Continuous Cast Rod (CCR) sales in Q4 FY22 were up 2% YoY, at 74 Kt (vs 73 Kt in Q4 FY21). 

- EBITDA for the business stood at ₹387 crore in Q4 FY22 compared to ₹322 crore in Q4 FY21, up 20% YoY, on the back of better operational efficiencies and improved by-product realizations. 

- Revenue from the Copper Business was ₹9,787 crore this quarter, up 15% YoY, primarily due to higher global prices of copper and higher volumes. 

Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries, said: “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 optimization. We continue to remain one of the world’s lowest cost and highest EBITDA margin producers of aluminum. 

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. 

Our growth strategy will continue to be shaped by our 2050 ESG goals – achieving Net Zero in carbon emissions, effluent discharge, biodiversity loss and waste to landfill. To sum up, Hindalco sees a positive horizon which inspires us to invest in future-centric growth projects.”