Q3FY24 Preview: Hindalco Industries: Revenue seen at ₹5,29,729 Million, PAT at ₹27,157 Million

12 Feb 2024 , 12:16 PM

Result date: February 13, 2024

Recommendation: Buy

Target price: ₹581

(Source: IIFL Research)

Hindalco Industries could witness a sequential decline of 1% in aluminium sales volumes even as aluminium LME improved 2%. Novelis volumes will be impacted sequentially due to maintenance shutdown at North America (Oswego hot mill) and other regions. Copper sales could also come in lower on the back of a strong base of September 2023 quarter. Consolidated revenue could thus, decline 2% sequentially.

Overall profitability is likely to remain healthy, aided by lower costs of key inputs – energy and coal (India operations). This benefit will be partly offset by lower margins at Novelis (due to seasonality).

Profit After Tax or PAT could jump 24% sequentially.

Important management insights to watch out for:

• Demand trends across segments and markets
• Outlook on margins

₹ Million	December 2023 estimates	QoQ change	YoY change
Revenue	5,29,729	(2.25)%	(0.30)%
EBITDA	60,881	7.80%	68.75%
Profit After Tax	27,157	23.85%	99.35%

Source: Brokerage Reports