Hindalco Q2 FY25: Net Profit Up 78% Reaching ₹3,909 Cr

Hindalco Industries Ltd. announced its financial results for the quarter ended September 30, 2024. In its Q2 results, the company reported a net profit of ₹3,909 crore on Monday, November 11. This marks a 78% increase from ₹2,196 crore in the same quarter last year. The total income rose to ₹59,278 crore, reflecting an 8.5% growth from ₹54,632 crore year-on-year. 

The company reported a substantial 123% year-on-year (YoY) increase in standalone net profit, reaching ₹1,891 crore, up from ₹847 crore in the same quarter last year. Revenue from operations grew by 7%, reaching ₹58,203 crore in the reported quarter, up from ₹54,169 crore in the same period last year.

Hindalco Q2 Results Quick Insights

• Revenue: ₹58,203 crore, up by 7% YoY.
• Net Profit: ₹3,909 crore, up by 78%
• Segment Performance: The Aluminium India Upstream business reported an EBITDA of $1,349 per tonne, the highest in the past 10 quarters.
• Management’s Take: Strong profit growth driven by a robust operational performance by the India business, favorable macros, and prudent cost management.
• Stock Reaction: Hindalco Q2 results were reported on Monday post-market hours. On Tuesday, the company’s shares reached the day’s high of ₹673.50 on NSE. 
   

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Management Commentary

Satish Pai, Managing Director of Hindalco Industries said,“Our India business delivered a strong operational performance in Q2 bolstered by our relentless focus on operational reliability and cost management. Consequently, our Aluminium India Upstream business reported an EBITDA per tonne of $1,349— the highest in the last 10 quarters and the best-in-industry globally.” 

In a post-earnings call, he added, “The domestic demand is very strong. Right now, exports constitute 34 percent, whereas domestic sales are at 66 percent. Domestic is driven by electricals, conductor cables, electrification, packaging, etc. The only one that has slowed down a little bit is auto.”

Stock Market Reaction

On Monday, shares of Hindalco closed at ₹655.35 on NSE. The Q2 results of Hindalco were announced post-market hours. On Tuesday, shares opened at ₹668 on NSE, reaching a day’s high of ₹673.50. This could be a response from investors following the strong Q2 results.

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About Hindalco. & Upcoming News

Hindalco Industries Limited, a subsidiary of the Aditya Birla Group. The company operates approximately 52 manufacturing facilities in 10 countries. Hindalco plans a major upstream investment of $4-5 billion over the next three years to expand its aluminum smelters, alumina refineries, and copper recycling plants. Some projects, such as the copper smelter, are set as brownfield expansions, while the alumina refinery and copper recycling plant will be greenfield projects. 

The plan is expected to be funded from internal accruals and additional debt estimated at ₹7,000-8,000 crore, adding to the existing ₹6,000 crore for downstream projects like the FRP facility in Lapanga.

"The last few years, we invested in downstream aluminum and copper. Now, with the healthy balance sheet and looking at the Indian economic growth, the next three years, we are going to invest in upstream aluminum and copper, and those are of course larger and more CapEx intensive," Satish Pai, MD Hindalco Industries said.