Hindalco misses market projections with its Q2 net profit of Rs 2,196 crore

10 Nov 2023 , 03:32 PM

Hindalco Industries Limited, the flagship company of the Aditya Birla Group, announced a consolidated net profit for Q2 FY24 of Rs 2,196 crore, falling short of street projections. Comparing Hindalco’s Q2 net to the same quarter last year, it remained nearly unchanged at Rs 2,205 crore.

The company said on November 10 that its consolidated revenue from operations decreased 3.6% year over year to Rs 54,169 crore from Rs 56,176 crore a year earlier; revenue rose 2% from Rs 52,991 crore recorded in the prior quarter.

Consolidated profit after tax (PAT) was expected by analysts to be approximately Rs 2,668.10 crore, up 9% quarter over quarter and 21% year over year. 

Falling coal prices and a rebound in consumer durables during the July–September quarter helped the company’s profitability as destocking activity decreased.

For the quarter, earnings before interest, taxes, depreciation, and amortisation (EBITDA) totaled Rs 6,096 crore, a 6% increase from the previous year. EBITDA was predicted by analysts to be Rs 6007.50 crore.

Managing Director Satish Pai stated, ‘We have maintained momentum driven by our focus on cost control and a solid performance by all our downstream segments.’

In addition, Pai stated that record metal sales helped the company’s copper division achieve its ‘best-ever’ quarterly performance, and that Aluminium India’s upstream EBITDA increased by 7% over the first quarter on the strength of increased volumes and decreased input costs.

At $4.1 billion, net sales for the quarter declined 14% from the same period last year due to a drop in aluminium prices and a 5% decline in shipments of all flat rolled products.

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