Hindalco Q2 FY25 results: Strong India performance drives up consolidated profits

Consolidated PAT at ₹3,909 crore up 78%; India business PAT at ₹2,850 crore, up 135% 

Key Highlights of Q2 FY25 (vs. Q2 FY24)

• Aluminium Upstream EBITDA at ₹3,709 crore, up 79%; EBITDA margin at 41%
• All-time high quarterly Copper EBITDA at ₹829 crore, up 27%
• Novelis’ Rolled Product shipments at 945 KT, up 1%
• Consolidated EBITDA at ₹9,100 crore, up 49%
• Consolidated Net Debt to EBITDA at 1.19x as of September 30th, 2024
• Hindalco ranks as the World’s Most Sustainable Aluminium Company for the 5th consecutive year in S&P Global Corporate Sustainability Assessment rankings 2024 
   

Hindalco Industries Limited, the Aditya Birla Group metals flagship, reported a consolidated net profit of ₹3,909 crore for the second quarter, up 78%, driven by a strong operational performance by the India business, favourable macros and prudent cost management. Aluminium Upstream EBITDA per tonne was at $1,349, up 80%, with industry-best margins of 41%. Copper Business delivered another record-breaking performance in Q2, with EBITDA at an all-time high of ₹829 crore, up 27%. Novelis’ performance was impacted by the Sierre flood and tightening of scrap spreads. Excluding the Sierre flood impact, shipments grew by 4% and EBITDA per tonne was at $502 (As per US GAAP). 

Hindalco continues to generate healthy cash flow which helped the Company keep the Net Debt to EBITDA ratio below 1.2x.
 

Consolidated Financial Highlights for the Quarter and Half Year ended September 30, 2024

*As per US GAAP
 
 

Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries, said, "Our India business delivered a strong operational performance in Q2 bolstered by our relentless focus on operational reliability and cost management. Consequently, our Aluminium India Upstream business reported an EBITDA per tonne of $1,349— the highest in the last 10 quarters and the best-in-industry globally. The Copper business achieved another record quarterly EBITDA. Novelis’ global footprint allowed the company to achieve record beverage packaging shipments, partially offsetting the impact from the flooding-related outage at Sierre.

During the quarter, we made significant progress across our growth projects in India Business and Novelis. Our company’s robust cash flow generation enabled us to maintain a consolidated net debt-to-EBITDA ratio below 1.2x. 

Notably, Hindalco has been recognized as the World's Most Sustainable Aluminium Company for the fifth consecutive year in the S&P Global Corporate Sustainability Assessment rankings 2024, achieving a score of 87 out of 100—up 9 points from last year’s score, and our highest score till date. This achievement underscores our comprehensive approach to ESG, with dedicated efforts towards water positivity, zero waste to landfill, net-zero emissions, and preserving biodiversity.”
 

Advancing Sustainably

On the ESG front, Hindalco’s score of 87 out of 100 (as of October 30, 2024) was over 20 points ahead of its closest peer, reflecting continuous improvements in environmental, social, and governance (ESG) parameters. Hindalco secured 100th percentile in the environmental segment with an overall score of 87, which is 24 points higher than its nearest peer. In the social category, the company scored 89, which is  23 points ahead of its closest peer. In terms of governance, Hindalco scored 84, which is 12 points higher than its nearest peer. S&P Global’s Dow Jones Sustainability Indices (DJSI) is the world’s leading provider of ratings, and only the most sustainable global companies are considered for inclusion in the list.
 

Segment-wise Performance

Novelis*

• Shipments at 945 KT, up 1%, led by record beverage packaging shipments
• Novelis Revenue at $4.3 billion, up 5%, driven by higher average aluminum prices
• Adjusted EBITDA at $462 million, down 5% due to less favourable metal benefit, unfavourable product mix, and $25 million flood impact at Sierre
• Net Income at $128 million, down 18%, affected by $61 million in charges from Sierre production interruptions, along with restructuring and impairment costs
• Sierre Plant flood: Total net cash impact $80 million after insurance, with a $30 million effect on adjusted EBITDA, $25 million occurring this quarter

*As per US GAAP
 

Aluminium (India) 

• Quarterly Upstream revenue at ₹9,125 crore, up 16%
• Aluminium Upstream EBITDA at ₹3,709 crore up 79% supported by lower input costs
• Upstream EBITDA margins, at 41%, best in the global industry
• Downstream revenue at ₹3,161 crore, up 20%
• Sales of Downstream Aluminium stood at 103 KT, up 10%
• Downstream EBITDA per tonne was $179, down 11%
   

Copper (India)

• Quarterly revenue at ₹13,114 crore, up 5%
• EBITDA at an all-time high of ₹829 crore, up 27%
• Copper metal sales were at 117 KT, down 13%
• Copper Continuous Cast Rod (CCR) sales were at 90 KT, down 10%
   
   

Business Updates & Recognition 

• Hindalco retains the leadership position in the S&P Corporate Sustainability Assessment rankings 2024 for the fifth consecutive year, with a score of 87 out of 100 - an improvement of 9 points over its 2023 score, and its highest score till date
• Novelis’ Bay Minette project remains on track; expected to be completed by second half of CY26
• Aditya Flat Rolled Product (FRP) expansion in Odisha to be commissioned by FY26 increasing aluminium downstream capacity from 430,000 tonnes to 600,000 tonnes
• India’s first Greenfield Inner Grooved Tubes project with a 25,000-tonne capacity, to be commissioned in January 2025