Hindalco PAT dropped 63 per cent in the December quarter

Aditya Birla Group metals flagship Hindalco Industries reported a 62.9 percent drop in consolidated profit after tax to Rs 1,3620 million for the quarter ended December 31, 2022, primarily as a result of higher input costs, unfavorable macroeconomic conditions, and inflationary effects. In a regulatory filing, Hindalco stated that the company's consolidated Profit After Tax (PAT) was Rs 3,6750 million in the year prior. The company stated in a statement, Consolidated PAT in Q3 FY23 was at Rs 1,3620 million compared to Rs 3,6750 million in Q3 FY22, a decline of 63 per cent YoY (Year-on-Year). According to the filing, however, revenue from operations increased to Rs 53,1510 million in the third quarter, up from Rs 50,2720 million a year earlier. The surge in input costs and lower realisations put pressure on the India aluminum upstream business's EBITDA, but higher volumes partially offset this. According to Hindalco Industries Managing Director Satish Pai, the India aluminium downstream business segment delivered a higher EBITDA YoY, due to higher volumes and better pricing. He stated that the company's copper business experienced a 40 per cent increase in EBITDA as a result of higher volumes, improved realisations, and robust domestic demand. Novelis experienced shipments falling, negative foreign exchange rates, and unprecedented inflationary pressures; Higher prices and a favorable product mix partially offset this. He continued, We believe the long-term story remains positive backed by our strong balance sheet and resilient business model, despite the hits of this quarter due to external factors. Due to higher volumes in the third quarter of FY23, the copper business generated Rs 10,3090 million in revenue during the quarter, an increase of 1 per cent year-over-year.