Hindalco Industries Q2 profit tumbles 35%

14 Nov 2022 CW Team

Hindalco Industries Ltd reported a 35.4 percent drop in consolidated profit after tax to Rs 22.05 billion for the quarter ended September, owing primarily to higher input costs. Hindalco Industries, a subsidiary of the Aditya Birla Group, reported a consolidated profit after tax of Rs 34.17 billion in the previous fiscal year, according to a BSE filing.

However, consolidated revenue from operations increased to Rs 561.76 billion in the second quarter of the current fiscal year from Rs 476.65 billion the previous year.

"Hindalco Industries... reported consolidated revenue of Rs 561.76 billion in Q2 FY23, an increase of 18 per cent Y-o-Y, driven by higher volumes and better realisations," the company said in a statement.

The company reported an EBITDA of Rs 57.43 billion in the second quarter, a 29% decrease from the previous year, owing to rising input costs and unfavourable macroeconomic conditions. This was offset in part by improved operational performance in the copper and downstream businesses. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) is an abbreviation for Earnings Before Interest, Taxes, Depreciation, and Amor.

Satish Pai, the company's managing director, stated that over the years, the company has transitioned to a resilient and integrated business model that supports performance and profitability even in difficult times.

Despite an increase in input costs, the company produced the highest-ever volumes of aluminium metal.

While the company's upstream aluminium business' EBITDA was impacted by higher raw material and energy costs, the company's downstream aluminium business performed well, with EBITDA more than doubling year on year due to better pricing and market demand.

According to Pai, the copper industry outperformed, reporting its highest-ever metal and copper rod sales.