- 11 Aug 2022
- ICICIdirect Research
HINDALCO INDIAN ALUMINIUM, COPPER BUSINESS VOLUMES BEAT OUR ESTIMATES IN Q1FY23
HINDALCO - 663 Change: 6.40 (0.98 %)News: For Q1FY23, Hindalco’s India business reported topline of Rs 19733 crore, up 48% YoY and 1% QoQ, higher than our estimate of Rs 17633 crore. For the quarter, Indian Aluminium business reported sales volume of 333000 tonnes higher than our estimate of 320000 tonnes. For the quarter, Indian Copper business reported sales volume of 101000 tonnes, marginally higher than our estimate of 100000 tonnes. For Q1FY23, Hindalco’s Indian Business EBITDA (Business segment EBITDA) stood at Rs3995 crore, up 52% YoY however down 6% QoQ, notably higher than our estimate of Rs 2864 crore. During the quarter Hindalco reported an exceptional income to the tune of Rs 41 crore. The ensuing PAT of Hindalco’s India Business for Q1FY23 stood at Rs 1786 crore, up 72% YoY however down 11% QoQ, higher than our estimate of Rs 1147 crore.
View: For the quarter, Hindalco’s Indian Aluminium Business EBITDA stood at Rs 3430 crore, up 45% YoY however down 12% QoQ, significantly higher than our estimate of Rs2494 crore. Of the overall India Aluminium Business EBITDA, upstream Aluminium Business EBITDA stood at Rs 3272 crore while downstream Aluminium Business EBITDA stood at Rs 158 crore. For the quarter, Aluminium India Business EBITDA/tonne (after adjusting for Intersegment profit/loss elimination and metal price lag) stood at US$ 1291/tonne, notably higher than our estimate of US$ 950/tonne. During the quarter, Hindalco’s Indian Aluminium Business was supported by lower cost metal inventory available at the start of the quarter that led to better than expected performance. For the quarter, Hindalco’s Indian Copper Business EBITDA stood at Rs 565 crore, up 116% YoY and 46% QoQ, higher than our estimate of Rs370 crore.
Impact: Neutral.