India’s largest aluminium producer, Hindalco posted its September quarter (Q2FY22) results on Friday, 12 November 2021.
The company’s consolidated revenues (topline) stood at ₹47,665 crore, up 53% year-on-year. Company’s net profit grew multi-fold on the backdrop of strong revenue growth and stood at ₹3,417 crore. Both revenues and profits were above street estimates.
Hindalco’s aluminium business revenue grew 63% year-on-year and its EBITDA stood at an all-time record high of ₹3,247 crore. Company benefited due to higher aluminium prices.
Similarly, revenues of the copper business grew over 100% due to higher copper prices.
Hindalco’s US arm, Novelis benefited due to the pick up in demand and higher metal prices. However, the expected demand from the automotive sector was impacted due to the chip shortage.
In the September quarter, Hindalco reduced its net debt by ₹3,900 crore and net debt now stands at ₹48,000 crore. The net debt-to-EBITDA ratio now stands at 1.9x compared to 3.5x in the same quarter last year.
Reducing the net debt-to-EBITDA ratio gives an indication about the company's cash generating ability and long-term stability.
The company's share price has risen by nearly 44% in the current financial year. In comparison, the Nifty50 index has risen by almost 23% during the same period, which shows that Hindalco has significantly outperformed the broader markets.