Hindalco, an Aditya Birla Group company, has reported a decent 25% rise in consolidated net profit at Rs 3,074 crore for the April-June quarter of this financial year.
Consolidated revenue from operations of the company rose 7.5% to Rs 57,013 crore in the quarter ended June. However, the company faced headwinds from higher expenses on account of disruptions at its Novelis plant in Switzerland. Novelis, which contributed more than 60 per cent to the firm's total revenue, suffered a net cash impact of $80 million because of the shutdown of its facility in Switzerland.
The revenue from Hindalco's copper segment increased 15.6% to Rs 13,292 crore, helped by increased shipments and improved realizations. Aluminium upstream and downstream sectors' revenue increased by 9.6% and 18%, respectively, according to the company's regulatory filing.
EBITDA for Hindalco stood at Rs 7,992 crore in Q1 FY25, a jump of 31% YoY, on the back of lower input costs and higher volumes.
Hindalco Industries Managing Director Satish Pai said that Q1 was exceptionally strong, driven by an amalgamation of sustained operational efficiencies and cost management, which would help the company reap its benefits through higher metal prices. He mentioned that major capital investments in the downstream sector are coming to a close and that future growth in the upstream sector shall be powered by a strong cash position.
Novelis reported 8% year-over-year growth in net sales for the first quarter, at $4.2 billion. The increase was due to higher average aluminum prices and increased shipment volumes. Shipments of flat-rolled products were up 8% year over year, helped by continued strong demand for beverage packaging sheets.
However, Novelis's net income attributable to common shareholders dropped 3 per cent to $151 million in the June quarter driven largely by initial charges of the Sierre, Switzerland plant flooding, higher restructuring costs and adverse metal price movement. This was partially offset by higher adjusted EBITDA. The Hindalco share price stood at around Rs 626 on Tuesday.
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