Hindalco Q4 Results Highlights: Net profit jumps 31% to ₹3,174 crore; dividend declared

Satish Pai, Managing Director of Hindalco Industries, said, "Hindalco concluded the year with very strong results across all business segments. This was a clear testament to our strategic focus on value-added products and margin improvement. The Copper business has grown to become the 2nd largest in the world for Copper rods (excluding China). It achieved its best ever performance with sales crossing 500,000 tonnes for the first time, and an alltime high EBITDA for the quarter and the year. Similarly, the Aluminium India Upstream Business reported industry-best quarterly EBITDA margins of 32%, driven by higher volumes and cost optimisation. Our continued focus on enhancing share of the downstream segment is evident in its promising sales trajectory. Novelis demonstrated an improved EBITDA per tonne driven by lower operating costs, favourable metal benefits and market recovery."

"We continue to maintain a strong balance sheet and solid liquidity even after repaying ₹5,195 crore of debt in Hindalco India business during the year. This positions us well to stay on our growth track and drive our future organic growth plans with prudent capital allocation," he added.

Moreover, Pai said, "On the ESG front, our large scale renewable and energy storage projects have put us well on track for our climate action targets, and we have further advanced our initiatives in waste recycling, protecting biodiversity and water conservation".

The company recommended a dividend of ₹3.50 per equity share of ₹1 each for the year ended March 31, 2024.

• Consolidated PAT at ₹10,155 crore, up 1%
• Consolidated EBITDA at ₹25,728 crore, up 7%
• All-time high Copper EBITDA at ₹2,616 crore, up 16%
• All-time high metal sales volumes in aluminium of 1,372 KT up by 2%, and copper at 506 KT, up 15%
• Hindalco-Novelis in the top 1% S&P Global ESG score in the Aluminium Industry
• Consolidated Net Debt to EBITDA at 1.21x as of March 31st, 2024 vs 1.39x a year ago
• Board recommends dividend @350%(₹3.5/share) for FY24 vs 300%(₹3/share) for FY23

• Consolidated PAT at ₹3,174 crore, up 31.6%
• Consolidated EBITDA at ₹7,201 crore, up 24% YoY
• Aluminium Upstream EBITDA at ₹2,709 crore, up 24% YoY; Industry-best EBITDA margins at 32%
• All-time high quarterly Copper EBITDA at ₹776 crore, up 30% YoY
• Novelis’ Adjusted EBITDA per tonne at $540*, up 25% YoY

Hindalco is expected to declare the March 2024 quarter results shortly. The company's shares were trading 0.11% higher at ₹677.5 ahead of the results.

Ahead of the release of Q4FY24 results, Hindalco shares edged 0.34% higher on the NSE. The scrip was valued at ₹679.15 at 1:00 pm.

• Hindalco had reported a consolidated quarterly net profit of ₹2,411 crore in the March 2023 quarter, which was down 37% YoY.
• The company’s consolidated revenue during the quarter was almost flat at ₹55,857 crore.
• The EBITDA in Q4FY23 was recorded as ₹5,818 crore, which was down 23% as compared to the year-ago period.

Over the past year, the stock has rallied by 60%, and the year-to-date growth is 10.7%. The company’s market capitalisation stands at ₹1.51 lakh crore.

The revenue from operations could decline by 2.5% YoY to ₹54,442.6 crore, as per the average of estimates shared by nine brokerages.

The EBITDA is expected at ₹6,578.48 crore, up 21.3% as against the year-ago period, according to the estimates.

As per the average of estimates shared by nine brokerages, Hindalco’s net profit is likely to surge by 18.3% YoY to ₹2,852.2 crore.

Hindalco shares opened in the green during the trading session on Friday, ahead of the release of Q4 results. At the opening bell, the scrip was valued at Rs 679.25, higher as compared to the last closing price of Rs 676.8.

Hindalco Industries Ltd, the metals flagship of Aditya Birla Group, is scheduled to declare its results for the quarter ended March 2024 on Friday, May 24. Along with the Q4 results, the company would also post its earnings for the entire fiscal year ended March 31, 2024. Stay tuned here for the latest updates.

Hindalco Q4 results preview

Hindalco’s net profit is likely to surge by 18.3% year-on-year (YoY) to ₹2,852.2 crore, as per the average of estimates shared by nine brokerages. However, the revenue could decline by 2.5% YoY to ₹54,442.6 crore, as per the estimates.

The earnings before interest, tax, depreciation and amortisation (EBITDA) is expected at ₹6,578.48 crore, up 21.3% as against the year-ago period, according to the estimates.

How Hindalco performed in Q4FY23?

Hindalco had reported a consolidated quarterly net profit of ₹2,411 crore in the March 2023 quarter, which was down 37% YoY. The company’s consolidated revenue during the quarter was almost flat at ₹55,857 crore.

The EBITDA in Q4FY23 was recorded as ₹5,818 crore, which was down 23% as compared to the year-ago period.

Hindalco shares

A day before the release of Q4FY24 results, Hindalco shares settled 1.13% lower at ₹676.8 on the National Stock Exchange (NSE).

Over the past year, the stock has rallied by 60%, and the year-to-date growth is 10.7%. The company’s market capitalisation stands at ₹1.51 lakh crore.