Hindalco, the metals flagship of the Aditya Birla Group, reported a consolidated net profit of ₹3,074 crore for the first quarter of fiscal year 2023-24 (Q1FY25) on Tuesday. This reflects a 25.2% increase compared to the ₹2,454 crore recorded in the same quarter of the previous fiscal year, largely driven by operational efficiencies and reduced input costs. Consolidated revenue for the quarter reached ₹57,013 crore, an 8% year-on-year (YoY) growth, fueled by improved realisations and efficiency gains in Indian operations.
Despite the positive financial performance, Hindalco‘s shares dipped slightly after the results were announced, with the stock trading 1.46% lower at ₹620.15 per share on the NSE by 3:25 pm. Analysts attributed the decline to the net profit falling short of expectations, as the reported figure of ₹3,074 crore was below the Bloomberg consensus estimate of ₹3,428 crore.
The company’s total income for the quarter stood at ₹57,437 crore, reflecting a 7% increase from ₹53,382 crore in the corresponding period of the previous year. The company’s EBITDA for Q1FY25 was ₹7,992 crore, a significant 31% YoY rise from ₹6,109 crore, driven by reduced input costs and increased volumes. “Our strong Q1 performance is a testament to consistent operational excellence and cost optimisation, which enabled us to capitalise on higher average metal prices,” said Satish Pai, Managing Director of Hindalco Industries.
Pai noted that the copper business achieved its highest quarterly EBITDA, propelled by strong domestic sales, particularly in downstream products, favorable by-product credits, and improved operational efficiencies following a planned shutdown. The Aluminium India Upstream business also posted an 81% YoY increase in EBITDA.
Pai further mentioned that the major capital formation phase of the downstream business is nearing completion, and the company will now explore growth opportunities in the upstream segment, supported by its robust cash position. The copper division delivered a record-breaking performance in the first quarter, with an all-time high EBITDA of ₹805 crore, up 52% YoY, bolstered by higher average copper prices and solid operations.
Hindalco, a $26 billion metals giant, is the world’s largest aluminium company by revenue and the second-largest copper rod producer globally (outside of China). The company’s operations span the entire value chain, including bauxite mining, alumina refining, coal mining, captive power generation, aluminium smelting, and downstream activities such as rolling, extrusion, and foil production.
Through its subsidiary Novelis, the company is a global leader in flat-rolled products and the largest recycler of aluminium in the world. In India, Hindalco is the leading copper producer, meeting over half of the country’s copper demand. Its copper facility in Gujarat includes a smelter and refinery complex, downstream capabilities, and a captive jetty. Hindalco’s global presence extends across 52 manufacturing units in 10 countries.
Hindalco Industries, part of the Aditya Birla Group, is a leading global metals company specializing in aluminium and copper production. With operations spanning the entire value chain from mining to finished products, the company is the world’s largest aluminium company by revenue and a top global player in copper. It operates 52 manufacturing units across 10 countries.
