Hindalco Reports Consolidated First Quarter FY2025 Results

Robust results supported by strong macros and operational efficiencies

Consolidated PAT at ₹3,074 crore, up 25% YoY

Q1 FY25 Performance (vs Q1 FY24)

• Consolidated EBITDA at ₹7,992 crore, up 31% YoY
• Aluminium Upstream EBITDA at ₹3,493 crore, up 81% YoY; Industry-best EBITDA margins at 40%
• All-time high quarterly Copper EBITDA at ₹805 crore, up 52% YoY
• Novelis’ Adjusted EBITDA per tonne at $525*, up 10% YoY
• Consolidated Net Debt to EBITDA at 1.24x as of June 30th, 2024 vs 1.73x as of June 30th, 2023

Hindalco Industries Limited, the Aditya Birla Group metals flagship, reported a consolidated quarterly Net Profit of ₹3,074 crore, an increase of 25% YoY, supported by favourable macros, operational efficiencies and lower input costs. Aluminium Upstream EBITDA per tonne was at $1,273, up 84% YoY, with industry-best margins of 40%. Copper Business delivered a new record-breaking performance in Q1, with EBITDA at an all-time high of ₹805 crore, up 52% YoY, backed by higher average copper prices and robust operations.

Novelis reported a strong first-quarter performance with EBITDA per tonne at $525*, an increase of 10% compared to last year. Hindalco maintained a solid balance sheet and liquidity position which helped the Company keep the Net Debt to EBITDA ratio below 1.5x.

*As per US GAAP

Consolidated Financial Highlights for the Quarter ended June 30, 2024

(Rs. crore)

Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries, said, “Our strong Q1 results ride on the back of consistent operational excellence and cost optimization which allowed us to leverage the higher average metal prices.

The Copper business achieved its highest quarterly EBITDA is driven by high domestic sales (especially downstream products), healthy by-product credits and better operational efficiencies following a successfully planned shutdown. The Aluminium India Upstream business recorded an 81% growth in EBITDA over the previous year. At 40%, it has registered the highest EBITDA margins globally. Novelis’ EBITDA per tonne at $525, was up 10% YoY, primarily due to increased volumes led by normalized beverage can shipments. Looking ahead, the major capital formation phase of the downstream business is near completion, and from here on, we will explore growth opportunities in the upstream business given our strong cash position. 

On the ESG front, I am happy to report that we are on track on our roadmap for climate action, waste recycling, water conservation, and biodiversity protection.”

Consolidated Results

Consolidated revenue for the first quarter stood at ₹57,013 crore (vs ₹52,991 crore), up 8%YoY, on account of better realisations and efficiencies in India operations.

Hindalco reported an EBITDA of ₹7,992 crore (vs ₹6,109 crore) in Q1 FY25, up 31% YoY, driven by lower input costs and higher volumes.

Consolidated PAT in Q1 FY25 was ₹3,074 crore compared to ₹2,454 crore in Q1 FY24, up by 25% YoY. Consolidated Net Debt to EBITDA stood at 1.24x as of June 30th, 2024 vs 1.73x as of June 30th, 2023.

Business Segment Performance in Q1 FY25 (vs Q1 FY24)

Novelis*

Total shipments of flat rolled products were at 951 KT in Q1 FY25 vs 879 KT in Q1 FY24, up 8% YoY supported by normalised demand for beverage packaging sheets. Novelis’ revenue in Q1 FY25 stood at $4.2 billion (vs $4.1 billion), up 2% YoY, driven by higher average aluminium prices YoY and higher shipments. Novelis reported an adjusted EBITDA of $500 million (vs $421 million), up 19% YoY supported by higher shipments and favourable product pricing. Novelis’ adjusted EBITDA per tonne at $525 was up 10% YoY. Net income attributable to our common shareholder, was $151 million in Q1 FY25, down 3% YoY due to initial charges associated with flooding at the Sierre plant, Switzerland, caused by unprecedented heavy rainfall in June, as well as higher restructuring and unfavourable metal price lag, largely offset by higher Adjusted EBITDA. The total net cash impact of flooding at the Novelis Sierre plant, after insurance, is estimated at $80 million. The net impact on Adjusted EBITDA is estimated to be $30 million, most of which will occur in the second quarter.

Aluminium (India)

Quarterly Upstream revenue was ₹8,839 crore in Q1 FY25 vs ₹8,064 crore in the prior year period. Aluminium Upstream EBITDA stood at ₹3,493 crore in Q1 FY25, compared with ₹1,935 crore for Q1 FY24, up 81% YoY supported by lower input costs. Upstream EBITDA margins, at 40%, were the best in the global industry.

Downstream revenue was ₹2,868 crore in Q1 FY25 vs ₹2,435 crore in the prior year period. Sales of Downstream Aluminium stood at 96 KT vs 81 KT in Q1 FY24, up 18% YoY. Downstream EBITDA per tonne was $138 in Q1 FY25, compared to $202 for Q1 FY24, down 32% YoY.

Copper

Quarterly revenue from the Copper Business stood at ₹13,292 crore, up 16% YoY, on account of higher shipments and realisation. EBITDA for the Copper Business was at an all-time high of ₹805 crore in Q1 FY25 compared to ₹531 crore in Q1 FY24, up 52% YoY backed by higher average copper prices and robust operations. Quarterly Copper metal sales were at 119 KT (vs 118 KT). Copper Continuous Cast Rod (CCR) sales were at 100 KT in Q1 FY25 (vs 98 KT), up 2% YoY in line with growing market demand for value-added products.

Business Updates & Recognition

• Novelis’ Bay Minette project remains on track, expected to be completed by the second half of CY26
• Aditya FRP expansion in Odisha to be commissioned by FY26
• Silvassa extrusions plant ramping up
• Hindalco in the Top 10 of the 'Great Place to Work' list in Health and Wellness for 2024
• Hindalco awarded ‘Masters of Risk’ title in Private Sector – large cap category at the India Risk Management Awards 2024