Hindalco Q3 Results FY2023, Net profit at Rs. 1362 crores

On 9th February, Hindalco announced its results for the third quarter of FY2023.

Key Highlights:

- Consolidated revenue for the third quarter stood at Rs.53,151 crore, up 6% YoY due to better realizations and better volumes in India operations.
- Hindalco reported an EBITDA of Rs.3,930 crore in Q3 FY23, down 48% YoY, impacted by rising input costs and unfavorable macros, partially offset by the better operational performance of copper and downstream businesses
- Consolidated PAT in Q3 FY23 was at Rs.1,362 crores, a decline of 63% YoY
-  Consolidated Net Debt to EBITDA remained strong at 1.60x on December 31, 2022

Business Highlights:

- Total shipments of flat rolled products (FRPs) were at 908 Kt in Q3 FY23 vs 930 Kt in Q3 FY22, down 2% YoY, on account of inventory reduction by can customers, partially offset by higher shipments of automotive and aerospace products in the Novelis business. Novelis’ revenue in Q3 FY23 stood at $4.2 billion, down 3% YoY, driven by lower average aluminum prices and lower shipments in Q3 FY23. 
- Aluminum upstream revenue was Rs.8,046 crore in Q3 FY23 vs Rs.8,019 crore in the prior year period. Aluminium Downstream revenue was Rs.2,647 crore in Q3 FY23 vs Rs.2,885 crore in the prior year period
- Revenue from the Copper Business was Rs.10,309 crore this quarter, up 1% YoY, on account of higher volumes in Q3 FY23. Copper cathode production was at 104 Kt in Q3 FY23 (vs 102 Kt in Q3 FY22) while copper rod production was 91 Kt in Q3 FY23 (vs 77 Kt in Q3 FY22). Overall copper metal sales were at 109 Kt (vs 110 Kt in Q3 FY22). Copper Continuous Cast Rod (CCR) sales also touched a record 88 Kt in Q3 FY23 (vs 71 Kt in Q3 FY22), up 24% YoY supported by improved market conditions.
- Pilot production begins at Hindalco’s new 34Kt Extrusions facility in Silvassa, India
- Additional 350 Kt expansion via debottlenecking at Utkal Alumina in progress.

Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries, said: “We are seeing core industries worldwide being buffeted by macro-economic and inflationary cost pressures, yet we delivered a strong operational performance with higher volumes across India business segments. 
Though the India Aluminium upstream business EBITDA came under pressure from the surge in input costs and lower realizations, this was partially offset by higher volumes. The India Aluminium downstream business segment delivered a higher EBITDA YoY, due to higher volumes and better pricing. The Copper business registered a 40% growth in EBITDA driven by higher volumes and better realizations, supported by robust domestic demand. Novelis witnessed unprecedented inflationary pressures, unfavorable foreign exchange rates, and lower shipments; this was partially offset by higher pricing and a favorable product mix.
Despite the hits of this quarter due to external factors, we believe the long-term story remains positive backed by our strong balance sheet and resilient business model.”