StoxBox: Key Highlights on Hindalco Industries Ltd. Q4 FY24 Results

Hindalco Industries Ltd. Q4FY24 Result First Cut – Robust performance and improved margins across all business segments supported by strong performance from Novelis

  • Consolidated Revenue from Operations stood at Rs. 55,994 crores in Q4FY24, up 6.0% QoQ and up 0.3% YoY on account of strong performance from Novelis and its copper business, which has grown to become the second largest in the world for Copper rods (excluding China). It achieved its best-ever performance, with sales crossing 500,000 tonnes for the first time.
  • EBITDA for Q4FY24 stood at Rs. 6,681 crores, up 13.9% QoQ / up 25.4% YoY, driven by the aluminium upstream, the industry’s best and all-time high quarterly EBITDA. EBITDA margin for Q4FY24 stood at 11.9% in Q4FY24, up 82bps QoQ / up 239bps YoY.
  • Net Profit for Q4FY24 stood at Rs. 3,174 crores, up 36.2% QoQ / up 31.7% YoY. The PAT margin was 5.7% versus 4.4% in the previous quarter.
  • Novelis’ revenue stood at USD 4.1 billion, which was flat QoQ and supported by higher shipments. Its EBITDA was supported by favourable metal benefits from recycling and lower operating costs.
  • Quarterly Upstream revenue was Rs. 8,469 crores in Q4FY24 vs Rs. 8,050 crores in the prior year. Aluminium Upstream EBITDA stood at Rs. 2,709 crores in Q4FY24, compared with Rs. 2,192 crores for Q4FY23, up 24% YoY, and up 11% QoQ supported by lower input costs. Upstream EBITDA margins, at 32%, were the best in the global industry.
  • Downstream revenue was Rs. 2,920 crores in Q4FY24 vs Rs. 2,738 crores in the prior year. Sales of Downstream Aluminium stood at 105 KT vs 90 KT in Q4FY23, up 17% YoY, and up 16% sequentially. Downstream EBITDA per tonne was $174 in Q4FY24, compared to $152 for Q4FY23, up 15% YoY and up 27% QoQ.
  • Revenue from the Copper Business stood at Rs. 13,424 crores, up 20% YoY, because of higher volumes. EBITDA for the Copper Business was at an all-time high of Rs. 776 crore in Q4FY24 compared to Rs. 598 crore in Q4FY23, up 30% YoY, and up 18% QoQ backed by stable operations, higher domestic sales and better Tc/Rc. Quarterly Copper metal sales were at 135 KT (vs 119 KT). Copper Continuous Cast Rod (CCR) sales were at 98 KT in Q4FY24 (vs 95 KT), up 3% YoY in line with growing demand for value-added products.
  • India’s first Copper Inner Grooved Tubes (IGT) plant is on track to be commissioned by the end of CY24. IGT for air conditioners and speciality copper rods for railways will help the nation achieve self-sufficiency in critical components under the government’s Make in India initiative.
  • The company’s board has recommended a final dividend of Rs. 3.50 per share for the year ended March 31, 2024.

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