Hindalco Industries reports 71% increase in consolidated PAT for Q3 FY2024

In a striking display of resilience and strategic foresight, Hindalco Industries Limited, the metals flagship of the Aditya Birla Group, unveiled its consolidated third-quarter financial results for the fiscal year 2024. The Mumbai-based conglomerate reported a substantial 71% year-on-year increase in its Consolidated Profit After Tax (PAT), reaching ₹2,331 crore, underpinned by robust performance across its aluminium and copper business segments. This achievement highlights the company’s exceptional operational efficiency and market leadership in challenging economic conditions.

The Consolidated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a significant uptick, soaring by 61% year-on-year to ₹6,322 crore. This growth was largely driven by the exceptional performance of Novelis and the aluminium upstream business, which posted industry-leading EBITDA margins of 30.7% and an EBITDA increase of 54% year-on-year, respectively. The copper business was not far behind, registering a record EBITDA of ₹656 crore, up 20% year-on-year, thanks to higher volumes and robust operations.

Hindalco’s international arm, Novelis, reported a 33% year-on-year increase in its Adjusted EBITDA per ton, standing at $499, reflecting the favourable metal benefits from recycling and lower operating costs. This underscores Novelis’ role as a key contributor to Hindalco’s profitability and its position as a global recycling leader.

The company’s strategic focus on deleveraging was evident in its pre-payment of long-term debt amounting to ₹4,370 crore during the year, showcasing its commitment to maintaining a strong balance sheet amidst a high-interest rate environment. This prudent financial management has resulted in a consolidated Net Debt to EBITDA ratio of 1.43x as of December 31, 2023, an improvement from 1.6x a year earlier.

Satish Pai, Managing Director of Hindalco Industries, commented on the results, “We continue to stay on our growth track despite challenging market conditions, delivering a strong performance driven by an enhanced product mix and lower input costs across our businesses.” He further highlighted the company’s ongoing investments in growth areas within the aluminium and copper downstream sectors and its strategic initiatives in environmental, social, and governance (ESG) fronts.

Among its notable ESG initiatives, Hindalco has commenced work on India’s first Copper and e-waste recycling project in Gujarat and has been recognized for its energy transition efforts, winning the Energy Transition Changemaker Award at COP28. Furthermore, Hindalco’s commitment to sustainability was acknowledged with its listing among the top 1% in the aluminium industry in the S&P Global (DJSI) Sustainability Yearbook 2024.

Hindalco Industries Limited’s Q3 FY2024 results are a testament to the company’s operational excellence and strategic agility. Amidst fluctuating market conditions, Hindalco has managed to not only sustain growth but also position itself as a leader in sustainable practices within the metals industry. The company’s focus on reducing debt, coupled with its investment in high-growth areas and commitment to ESG principles, is setting a benchmark for others to follow. Hindalco’s performance is indicative of a well-rounded approach to business that balances profitability with sustainability, making it a standout example in the global metals sector.