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Hindalco’s profit jumps 32% to ₹3,174 cr due to reduced costs and improved realisation

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In Short:

Hindalco Industries, part of Aditya Birla Group, reported a 32 per cent increase in net profit in the March quarter, reaching ₹3,174 crore. This growth was due to lower costs and higher realisation. The company’s revenue remained flat at ₹55,994 crore. Hindalco also acquired a stake in a fabrication facility in Pune and plans to invest ₹6,000 crore in ongoing projects. Despite some challenges like coal supply disruption during monsoon and concerns about imports from China, the company remains optimistic about the future.


Good News Alert: Hindalco Industries Sees Huge Profit Jump!

Hey there, folks! Exciting news coming your way – Hindalco Industries, which is a part of the Aditya Birla Group, just announced a whopping 32% increase in their net profit for the March quarter. The numbers look fabulous with a profit of ₹3,174 crore, up from ₹2,411 crore compared to the same period last year. What’s more, this growth is mainly attributed to lower costs and better realisation.

Financial Performance Breakdown

The revenue from operations remained flat at ₹55,994 crore, while the EBITDA recorded a significant increase of 24% at ₹7,201 crore. The cherry on top, the company has also declared a dividend of ₹3 per equity share. Celebration time, right?

Operational Achievements

Aluminium upstream EBITDA jumped 24% to ₹2,709 crore, and the copper segment set an all-time high record at ₹776 crore, showing a 30% increase. The aluminium upstream revenue also saw a rise of 5% at ₹8,469 crore. Things are looking up!

Exciting Acquisitions

Hindalco, through a special purpose vehicle, has acquired a 74% stake in a fabrication facility in Pune, which will manufacture doors and windows. The popular Eternia brand will be associated with this venture. Innovation at its best!

Future Plans and Expansion

Satish Pai, the Managing Director of Hindalco Industries, shared that the profit growth was fueled by increased demand, reduced operational costs, and higher realisation in the aluminium and copper segments. The company plans to invest ₹6,000 crore this fiscal year in various projects to further expand its reach and offerings.

New orders

Hindalco has bagged new orders to supply aluminium for the production of six railway wagons for a top cement company, and also secured contracts to supply aluminium cases for electric vehicle batteries for an automobile company in Pune. More exciting deals are in the pipeline!

Staying Strong Amid Challenges

Despite the Red Sea crisis and challenges in imports from China, Hindalco remained resilient. The company has taken proactive measures to increase inventory levels to mitigate any disruptions in coal supply during the monsoon season. Smart thinking!

Wrap-up

In FY24, Hindalco’s net profit remained stable at ₹10,155 crore, while revenue slightly dipped. The company’s shares were down 0.51% at ₹673 on Friday. But hey, with all these exciting developments and growth prospects, there’s certainly a bright future ahead for Hindalco Industries!


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