Hindalco's Q2 consolidated net profit flat at Rs. 2,196 crore
Aditya Birla Group-owned Hindalco announced a consolidated net profit of Rs. 2,196 crore in Q2 FY24. This falls short of market estimates and remains nearly unchanged from the Rs. 2,205 crore reported in the same period last year. The firm's consolidated revenue from operations experienced a 3.6% year-on-year decline, totaling Rs. 54,169 crore. Analysts had anticipated a consolidated profit after tax (PAT) of approximately Rs. 2,668.10 crore and revenues of Rs. 53,558.60 crore.
Factors impacting Hindalco's Q2 performance
In the second quarter, Hindalco reaped the benefits of decreasing coal prices and a rebound in consumer durables as destocking activities eased, which helped support profits. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter reached Rs. 6,096 crore, a 6% increase year-on-year. Managing Director Satish Pai stated that they sustained momentum by concentrating on cost control and strong performance across all downstream segments.
Analysts' projections and Hindalco's copper business
Experts had predicted higher domestic sales volumes for Hindalco in copper and aluminum due to the buildup of lower-cost coal inventory and captive mines to boost margins. Pai also mentioned that the firm's copper business achieved its "best-ever" quarterly results, supported by record metal sales, while Aluminum India's upstream EBITDA increased by 7% over the first quarter due to higher volumes and reduced input costs.
Hindalco's standalone results
On a standalone basis, Hindalco's net profit surged 54.6% YoY to Rs. 847 crore for the quarter under review, while revenue increased 12.5% to Rs. 20,676 crore. The company's operating profit (EBITDA) grew 27.5% to Rs. 1,756 crore during this period. Hindalco shares settled almost flat at Rs. 481.30 apiece on the National Stock Exchange (NSE) on November 10.
