Hindalco’s Q1 standalone net doubles to Rs 734 cr

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MUMBAI: Aluminium and copper major Hindalco doubled its net profit year-on-year for the first quarter ended June with EBITDA reaching a record quarterly high of Rs 1,951 crore, the company said on Friday.

Standalone net profit for the company rose 102% to Rs 734 crore, led by higher EBITDA and lower finance costs. The figure includes earnings of the company’s alumina facility Utkal Alumina.

Revenue from operations of both entities showed a marginal increase of 2% at Rs 10,670 crore. EBITDA was up by 17% since last year, on the back of supporting macros, operating excellence and higher realisation in the copper business.

Revenue from aluminium business stood at Rs 5,667 crore with an EBITDA of Rs 1,531 crore, up 35% since last year, on account of better realisations and stable plant operations. Revenue from the copper business stood at Rs 5,006 crore. EBITDA went up by 4% at Rs 335 crore.

The company’s net debt stood at Rs 17,297 crore at the end of the June quarter. Due to high EBITDA, it’s net debt to EBITDA came down to 2.57x from 2.67x in the previous quarter.

Hindalco plans to repay Rs 1,500 crore debt in the coming quarter, company managing director Satish Pai told ET.

The company will also be refinancing part of its debt by way of a bond any time in the current fiscal year.

Hindalco’s US subsidiary Novelis had posted a 10% rise in net profit for the June quarter at $113 million, with net sales increasing 16% year on year to $3.1 billion. It had also acquired US -based aluminium products maker Aleris in July at an enterprise value of $2.6 billion.

The deal is awaiting regulatory approvals and is expected to close in a year from now, Pai said.

Source: Economic Times