Hindalco Industries Ltd., the metals flagship company of Aditya Birla Group announced its Q2 (July-September) FY 22 results on 12th November 2021.
Hindalco’s Consolidated Financial Performance
Consolidated Q2 FY22 v/s Q2 FY21 Financial Performance
Consolidated revenue for the second quarter of FY22 of Hindalco stood at ₹ 47,665 crore which is up by 53% from ₹ 31,237 crore of same quarter last year.
Hindalco reported a huge jump of 783% in its consolidated profit after tax (PAT) at ₹ 3,417 crore in Q2 FY22, up from ₹ 387 crore in Q2 of FY 21.
Consolidated Q2 FY22 v/s Q1 FY22 Financial Performance
The consolidated revenue for second quarter of FY22, at ₹ 47,665 crore, is up by 15% against ₹ 41,358 crore reported in the previous quarter of FY22.
The Q2 FY22 Net Profit of Hondalco has gone up by 23% in comparison to ₹ 2,787 crore in Q1 FY22.
Expressing on the results of second quarter FY 22 Mr. Satish Pai, Managing Director, Hindalco Industries Ltd. said “Our record-breaking performance this quarter is an affirmation of our fully integrated business model, which powers our performance in both upstream and downstream markets”.
Factors Which Contributed to Hindalco’s Record Profit
Hindalco reported standout performances across all business segments – Copper, Aluminium and Its wholly-owned subsidiary Novelis Inc., which contributed towards the outstanding results.
The revenue achieved by Hindalco’s Indian Aluminium business stood at ₹ 7,812 crore in Q2 FY22 which is 63 % higher from ₹ 4,796 crore reported in the same period last year.
Revenue from the Copper Business was ₹ 9,587 crore in Q2 FY22, up 101% year-on-year, primarily due to higher global prices of Copper. Also, Cathode production for Q2 stood at 100 KT as compared to 73 KT in Q2 last year, up 38% Y-o-Y
Novelis recorded Q2 FY22 adjusted EBITDA at $553 million versus $455 million of Q2 FY21, up by 22% due to higher volumes and favourable metal prices. Novelis Revenue was $4.1 billion in Q2 FY22 versus $3.0 billion for Q2 FY21, which is up by 38%, driven by higher shipments, global Aluminium prices and market premiums.
Hindalco Industries: Recent Expansions and Buyouts
Recently, Hindalco has signed a definitive agreement with Polycab to acquire its 100% equity stake in Ryker Base Pvt. Ltd. which has 225,000-tonne manufacturing facility for cast and rolled copper wire rods, located at Waghodia, Gujarat.
Hindalco also started commercial production at 500 KT expansion project in Utkal Alumina in this quarter. Utkal Alumina International Ltd’s expanded Alumina refinery (from 1.5 MTPA to 2 MTPA) was inaugurated on 16th September 2021 at Doraguda, Kashipur in Rayagada.
Novelis announced $130 million investments for plant upgrades at Oswego, US for additional 124KT hot mill rolling capacity and enhanced finishing capabilities for automotive sheets.
About Hindalco Industries Ltd.
Hindalco Industries Limited, an Indian aluminium and copper manufacturing company, is a subsidiary of the Aditya Birla Group. Its headquarters are at Mumbai, Maharashtra, India. The company has annual sales of US$15 billion. Hindalco is the world’s largest aluminium company by revenues, and a major player in copper. It is also one of Asia’s largest producers of primary Aluminium.