Hindalco Industries Ltd, a flagship company of the Aditya Birla Group, has increased its capital expenditure (capex) target for the fiscal year 2025 to ₹6,000 crore. The raised target is aimed at funding various strategic projects, including an alumina refinery, a copper recycling plant, a battery foil manufacturing unit, and the development of the Chakla coal mines.
“This year, we would rather spend the cash on the growth capex planned,” stated Managing Director Satish Pai during a media call following the company’s quarterly earnings announcement. Pai confirmed that the entire capex would be funded through internal accruals.
Earlier in the year, Hindalco had projected a capex expenditure of ₹5,000-5,500 crore for FY25. In the previous fiscal year, the company invested approximately ₹4,200 crore.
Despite repaying ₹5,195 crore in debt last fiscal year, Hindalco has “no plans” for further debt repayment in the current fiscal year. This decision aligns with the company’s focus on funding its ambitious growth projects. As of March-end, Hindalco’s consolidated net debt had decreased to ₹31,536 crore from ₹33,959 crore a year earlier.
The reduction in debt levels contributed to a decrease in the net debt-to-EBITDA ratio, which fell to 1.21 times from 1.39 times the previous year. The company’s EBITDA for FY24 increased by 7% to ₹25,728 crore, reflecting strong operational performance.
For the March quarter, Hindalco reported a 24% year-on-year increase in consolidated operating profit, reaching ₹7,201 crore, while revenue remained stable at ₹55,994 crore. Net profit surged nearly 33% to ₹3,174 crore, with all business verticals showing improved profitability.
“Hindalco concluded the year with very strong results across all business segments. This was a clear testament to our strategic focus on value-added products and margin improvement,” Pai said.
In addition to the revenue growth, the cost of production saw a marginal decline in the March quarter and is expected to decrease by another 1-2% this quarter, according to Pai.
Hindalco’s increased capex target and robust financial performance underscore its commitment to strategic growth and operational excellence, positioning the company for continued success in the evolving industrial landscape.