Hindalco Industries Ltd, the metals flagship of the Aditya Birla Group, reported a notable 123.3% year-on-year (YoY) increase in net profit to ₹1,891 crore for Q2 ending September 30, 2024. This jump was attributed to strong performance in the Indian market, advantageous macroeconomic factors, and effective cost management. In the same period last year, Hindalco’s net profit was ₹847 crore, according to the company’s regulatory filing.
Revenue from operations rose by 7.7% to ₹22,262 crore, compared to ₹20,676 crore a year earlier. Operating profit (EBITDA) climbed 56.5% to ₹2,749 crore, up from ₹1,756 crore in the previous year’s quarter, with EBITDA margin improving to 12.4% from 8.5% in Q2 FY24.
The aluminium upstream segment achieved an EBITDA per tonne of $1,349, reflecting an 80% increase, and maintained industry-leading margins at 41%. The copper business set a new record, with EBITDA at ₹829 crore, marking a 27% YoY rise. However, Novelis faced challenges from the Sierre flood and tightened scrap spreads.
Excluding flood impacts, Novelis shipments rose 4%, with EBITDA per tonne reaching $502. Hindalco also maintained strong cash flow, keeping its net debt to EBITDA ratio below 1.2x. In India, aluminium upstream revenue rose by 16% to ₹9,125 crore, and EBITDA grew by 79% to ₹3,709 crore, thanks to reduced input costs.
Downstream revenue increased 20% to ₹3,161 crore, with downstream sales up 10% to 103 KT, though EBITDA per tonne in this segment declined 11% to $179. In copper, revenue grew 5% to ₹13,114 crore, while EBITDA reached a record high of ₹829 crore, up 27%. However, copper metal sales dropped 13% to 117 KT, with continuous cast rod sales down 10% to 90 KT.
For Novelis, shipments increased by 1% to 945 KT, driven by record beverage packaging shipments, pushing revenue up 5% to $4.3 billion. Adjusted EBITDA fell by 5% to $462 million due to less favorable metal benefits and product mix, as well as a $25 million impact from the Sierre flood, which contributed to an 18% drop in net income to $128 million. The flood led to a total net cash impact of $80 million after insurance, affecting adjusted EBITDA by $30 million, with $25 million recorded in this quarter.
Hindalco Industries Limited, the metals flagship of the Aditya Birla Group, is a $26 billion global leader in metals. It is the world’s largest aluminium company by revenue and the second-largest copper rods manufacturer outside of China.
Hindalco’s operations span the entire value chain, from bauxite mining and alumina refining to coal mining, captive power plants, aluminium smelting, and downstream products like rolling, extrusions, and foils.
Alongside its subsidiary Novelis, Hindalco is the global leader in flat-rolled products and the largest recycler of aluminium worldwide. As India’s largest copper producer, Hindalco meets more than half of the country’s copper demand, with a state-of-the-art copper facility in Gujarat that includes a smelter, refinery, downstream facilities, and a captive jetty. With 52 manufacturing units across 10 countries, Hindalco has been ranked the world’s most sustainable aluminium company for five consecutive years (2020-2024) in the Dow Jones Sustainability Indices (DJSI).
