+
Hindalco Q2 net profit up 78%
ECONOMY & POLICY

Hindalco Q2 net profit up 78%

Hindalco Industries, a major producer of copper and aluminium, reported a 78% rise in consolidated net profit for Q2FY25, reaching Rs 3,909 crore, driven by improved operational performance and a one-time gain from the sale of land. The company also revealed plans to invest $4-5 billion in its upstream operations over the next two to three years, which includes boosting copper and aluminium production capacities.

In a media briefing on Monday, Hindalco executives shared details of their revised capex strategy, which is nearly $2 billion higher than previously planned. For the quarter ended September 2024, the company’s revenue surged 7.4% to Rs 58,203 crore. Hindalco’s earnings were bolstered by a more than twofold increase in other income, which rose to Rs 1,075 crore due to the land sale.

The company’s consolidated EBITDA for the quarter increased by 49% to Rs 9,100 crore, with India’s business contributing Rs 5,139 crore, up from double the previous year. Hindalco surpassed market expectations, with analysts having forecasted a revenue of Rs 54,984 crore and a net income of Rs 3,254 crore.

The investment plans will fund expansions including a 180 Kt increase in aluminium capacity, an 850 Kt alumina refinery, a 280-300 Kt copper smelting unit, and a copper scrap recycling facility. These projects will be financed through a combination of internal funds and debt, with the total capex potentially reaching Rs 7,000 to Rs 8,000 crore. This is in addition to Hindalco’s earlier planned Rs 6,000 crore for downstream capacities and the ongoing $4.1 billion Bay Minette project in the US.

Regarding its plans for a Novelis IPO in the US, Satish Pai, Hindalco’s MD, indicated that the listing may be revisited once the Bay Minette project is further advanced, around Q2FY26, and market conditions are favorable. Pai also warned that Novelis could face a challenging few quarters ahead, due to price pressures from Chinese demand on scrap metal. On the new US administration, Pai expressed confidence that it would benefit Novelis, which manufactures metal in the US for the domestic market.

The company also announced the cancellation of its $375 million investment in Zhenjiang City, China, citing increased costs, longer timelines, and project uncertainties in the current external environment.

Hindalco Industries, a major producer of copper and aluminium, reported a 78% rise in consolidated net profit for Q2FY25, reaching Rs 3,909 crore, driven by improved operational performance and a one-time gain from the sale of land. The company also revealed plans to invest $4-5 billion in its upstream operations over the next two to three years, which includes boosting copper and aluminium production capacities. In a media briefing on Monday, Hindalco executives shared details of their revised capex strategy, which is nearly $2 billion higher than previously planned. For the quarter ended September 2024, the company’s revenue surged 7.4% to Rs 58,203 crore. Hindalco’s earnings were bolstered by a more than twofold increase in other income, which rose to Rs 1,075 crore due to the land sale. The company’s consolidated EBITDA for the quarter increased by 49% to Rs 9,100 crore, with India’s business contributing Rs 5,139 crore, up from double the previous year. Hindalco surpassed market expectations, with analysts having forecasted a revenue of Rs 54,984 crore and a net income of Rs 3,254 crore. The investment plans will fund expansions including a 180 Kt increase in aluminium capacity, an 850 Kt alumina refinery, a 280-300 Kt copper smelting unit, and a copper scrap recycling facility. These projects will be financed through a combination of internal funds and debt, with the total capex potentially reaching Rs 7,000 to Rs 8,000 crore. This is in addition to Hindalco’s earlier planned Rs 6,000 crore for downstream capacities and the ongoing $4.1 billion Bay Minette project in the US. Regarding its plans for a Novelis IPO in the US, Satish Pai, Hindalco’s MD, indicated that the listing may be revisited once the Bay Minette project is further advanced, around Q2FY26, and market conditions are favorable. Pai also warned that Novelis could face a challenging few quarters ahead, due to price pressures from Chinese demand on scrap metal. On the new US administration, Pai expressed confidence that it would benefit Novelis, which manufactures metal in the US for the domestic market. The company also announced the cancellation of its $375 million investment in Zhenjiang City, China, citing increased costs, longer timelines, and project uncertainties in the current external environment.

Next Story
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?