Hindalco Q1 Results: Consolidated PAT Falls By 40.42% YoY To Rs 2,454 Crore; Stock Dips 3%

Leading aluminium and copper manufacturer, Hindalco earned a consolidated net profit of Rs 2,454 crore in the quarter ending June 30, 2023 (Q1FY24), declining by 40.42% against a profit of Rs 4,119 crore in the same quarter a year ago. The PAT was impacted despite sharp decline in expenses as fall in top-line takes a toll. Overall, Hindalco shares have surpassed expectations in net profit, revenue, and EBITDA.

Notably, PAT in Q1FY24 picked up gradually from a profit of Rs 2,411 crore witnessed in March quarter.

In regards to the top-line front, the company's revenue from operations were at Rs 52,991 crore in Q1FY24, declining by 8.66% from Rs 58,018 crore in Q1 of previous fiscal, Sequentially, the drop was around 5.13%. Except for the copper segment, revenue declined across verticals in the quarter.

On segment-wise revenue breakup, Novelis business revenue declines to Rs 33,606 crore in Q1FY24 versus Rs 39,289 crore in Q1FY23, upstream aluminium revenue fell to Rs 8,064 crore as against Rs 8,699 crore in Q1FY23, and the revenue in downstream aluminium dived to Rs 2,435 crore in the quarter versus Rs 2,740 crore in Q1FY23.

However, revenue from copper business surged to Rs 11,502 crore during June 2023 quarter compared to Rs 10,529 crore in Q1 of previous fiscal.

Consolidated total expenses stood at Rs 50,055 crore in the quarter under review, as against Rs 52,185 crore in Q1FY23 and Rs 53,372 crore in March quarter.

Hindalco also saw an exceptional items loss of Rs 12 crore in the quarter. It said, "during FY22, pursuant to the notifications issued by the Ministry of Environment, Forest and Climate Change (MoEFCC), the company had recognised provision for expected cost of disposal of legacy ash lying in ash dykes/ponds. During the quarter ended June 30, 2023, in view of the regulatory approval received on closure of one of its ash dykes/ponds and change in the initial plan of disposal of ash in certain other ash dykes/ponds, the company has recognised additional provision of Rs 12 crore (net of reversal) which is accounted as an exceptional expense."

On the standalone front, profit was at Rs 600 crore in Q1FY24, more than halved from Rs 1,448 crore in Q1FY23. Revenue, however, picked up to Rs 19,904 crore as against Rs 19,518 crore in June 2022 quarter.

On BSE, Hindalco shares traded at Rs 453.40 apiece, down by 2.43% at the time of writing. The stock was near its day's low of Rs 452.05 apiece. Overall, the stock has dipped by 2.7% on the exchange after Q1 earnings announcement.