Kumar Mangalam Birla-led Hindalco Industries reported a 17.5% rise in its third-quarter net profit to ₹376 crore, driven by higher metal prices.
Revenues at India’s top aluminium producer increased 11% to ₹11,023 crore on macro factors, volumes and by-product realisation. Aluminium contributed ₹5,323 crore to the revenues and copper ₹5,701 crore.
The company’s EBITDA for the quarter improved 15% to ₹1,611 crore.
EBITDA for aluminium business rose 7% to ₹940 crore on the back of higher metal prices and volumes, mitigating spiralling input costs. EBITDA for copper business surged 28% to ₹421 crore, consequent upon higher copper sales, by-product realisation and supportive macro factors.
One-time loss
Profit could have been higher but for the firm providing for a one-time loss of ₹115.3 crore following a Supreme Court judgement on mining regulations. “Performance across businesses continued to be robust. Stable operations and supportive macros remained the key drivers. Novelis has maintained its market leadership in can, auto segments as well as recycling operations. Going forward, strong recovery of demand across businesses in India augurs well for Indian operations,” Hindalco said in a statement.
U.S. capacity
Hindalco’s overseas subsidiary Novelis had recently announced its plans to expand its production footprint in the U.S. with $300 million investment in automotive finishing capacity in Kentucky, U.S. Novelis also agreed to acquire the operating facilities and manufacturing assets for €200 million at its Sierre, Switzerland, plant that had historically been leased.
Hindalco’s shares fell 2.94% to ₹249.4 on the BSE on Friday.
