09 Feb , 2023 By : Monika Singh
Aditya Birla group company Hindalco Industries today reported its fiscal third quarter consolidated net profit fell 63% on-year to Rs 1362 crore, as the company battled ‘rising input costs and unfavourable macros’. Hindalco’s revenue for the quarter ended 31 December 2022 rose 6% on-year to Rs 53,151 crore, mainly helped by better realisations and higher volumes in India business, the company said in a statement. “We are seeing core industries worldwide being buffeted by macro-economic and inflationary cost pressures…” Hindalco Managing Director Satish Pai said. “Though the India Aluminium upstream business EBITDA came under pressure from the surge in input costs and lower realisations, this was partially offset by higher volumes,” he added.
Hindalco’s US aluminium arm Novelis contributed to the bulk of revenue at about Rs 34,000 crore ($4.2 billion) during the quarter. Novelis’ performance in the October-December quarter was hit by lower shipments, higher inflationary pressures, less favourable metal benefits from recycling, and unfavourable foreign exchange. This was partially offset by higher pricing and a favourable product mix, leading to its net income from continuing operations to fall as much as 95% on-year to just about Rs 99 crore ($12 million).
Back home in India, Hindalco’s Aluminium upstream business recorded flattish revenue growth in the fiscal third quarter despite record production, whereas EBITDA fell 52% on-year to Rs 1,591 crore, primarily due to higher input costs and unfavourable macros. On the other hand, at Hindalco’s Aluminium downstream business, October-December revenue fell 8% on-year, on account of lower volumes; but EBITDA in the same period jumped 24% on-year to Rs 157 crore on account of better pricing, partially offset by high conversion costs.
Copper business revenues were up by 1% on-year in Q3 FY23, on account of higher global prices of copper compared to the corresponding quarter of the last year. Hindalco’s EBITDA from the copper business in Q3 FY23 jumped 40% on-year to Rs 546 crore, on the back of higher volumes of CC rods, better TC/RCs and realisations, it said.
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