Hindalco’s Net Profit Rises 78%, Co Plans Capex Of $4-5 Bn For Upstream Expansion

Hindalco Industries reported strong results on Monday, surpassing expectations with a net profit of Rs 3,909 crore for the quarter ending 30 September, up from Rs 3,298 crore a year prior. Revenue grew by 7 per cent to Rs 58,203 crore, compared to Rs 54,169 crore in the same period last year. Analysts had predicted a net profit of Rs 3,254.5 crore and revenue of Rs 54,984.10 crore.

Hindalco's share price closed at Rs 655.05 on the NSE, a modest increase of 0.71 per cent. The company also recorded a consolidated EBITDA of Rs 9,100 crore, up 49 per cent year-over-year, driven by reduced input costs and increased production volumes.

In the copper India business, quarterly revenue rose 5 per cent to Rs 13,114 crore due to higher shipments and pricing. While aluminium upstream revenue increased by 79 per cent year-over-year, aluminium downstream revenue dipped by 1 per cent to Rs 154 crore.

Managing Director Satish Pai highlighted robust domestic demand, with 66 per cent of sales occurring domestically, driven by sectors such as electricals, conductor cables and packaging. He noted a slowdown in the automotive segment and mentioned tight aluminium scrap availability due to China lifting import restrictions.

Looking to expand its upstream operations, Hindalco plans to invest USD 4-5 billion over the next three years. This investment, funded by internal accruals and additional debt of Rs 7,000 to Rs 8,000 crore, will support projects like aluminium smelters, alumina refineries, and copper recycling plants. Some projects will involve brownfield expansions, while others, such as the alumina refinery and copper recycling plant, are greenfield projects.