Hindalco is the world’s largest aluminium company by revenues and a major player in copper.
Hindalco reported a mixed bag performance in Q3FY23 wherein the India business performance came in better than our estimate but Novelis performance came in lower than our estimate.
Financial Performance
- Consolidated Net Profit stood at Rs 2,331 crore, marking a significant increase of 71% YoY.
- Consolidated EBITDA was Rs 6,322 crore, up by a robust 61% YoY.
- Revenue from Operations saw a marginal decrease of 1% YoY to Rs 52,808 crore.
- The company reported a consolidated Net Debt to EBITDA ratio of 1.43x, an improvement from 1.6x as of December 31, 2022.
Business Segment Results
- Novelis: Adjusted EBITDA per ton reached $499, up 33% YoY, with adjusted EBITDA at $454 million, a rise again by 33% YoY.
- Aluminium Business (India):
- Upstream EBITDA grew by 54% YoY to Rs 2,443 crore.
- Downstream EBITDA decreased by 34% YoY to Rs 103 crore.
- Copper Business: EBITDA reached a record Rs 656 crore, an increase of 20% YoY.
Operational Highlights
- Record Copper EBITDA was supported by higher volumes and robust operations.
- Novelis saw improvement driven by favorable metal benefits from recycling and lower operating costs.
- The Indian Aluminium Upstream Business maintained industry-leading EBITDA margins at 30.7%.
Business Updates
- Hindalco has prepaid long-term loans of Rs 4,370 crore during the year.
- The company's India business began working on India's first Copper and e-waste recycling project in Gujarat.
- Work on the nation's first Copper Inner Grooved Tubes plant is set to be commissioned by the end of CY2024.
Commenting on the results, Satish Pai, Managing Director, Hindalco Industries, said, “We continue to stay on our growth track despite challenging market conditions, delivering a strong performance, driven by an enhanced product mix and lower input costs across our businesses.
The Copper Business registered a record EBITDA, up 20% YoY on the back of strong volume growth and robust operations. The Aluminium Upstream Business EBITDA rose 54% YoY, supported by stable operations and lower raw material costs, which keeps us positioned in the first quartile of the global cost curve. We continue to invest in promising growth areas both in aluminium and copper downstream. Our overseas business and global recycling leader Novelis showed 33% YoY improvement in EBITDA and EBITDA per ton, driven by favourable metal benefits from recycling, higher pricing, and lower operating costs.
Robust cash generation in India operations enables further deleveraging of our India business; Hindalco has pre-paid long-term loans of Rs 4,370 crores during the year amid a high-interest rate scenario. On the ESG front, our first-of-its-kind energy transition initiative is on course to begin ramping up of 100 MW of round-the-clock carbon-free power for our Odisha smelter, by Q4 of CY2024.”
| Financials( ₹ in Cr) | Hindalco Industries Ltd | Hindustan Zinc Ltd | Hindustan Copper Ltd | National Aluminium Company Ltd | Gravita India Ltd |
|---|---|---|---|---|---|
| Price | 646.80 | 411.50 | 380.80 | 188.25 | 969.10 |
| % Change | 1.68 | 0.46 | 0.30 | 0.13 | 0.12 |
| Mcap ₹ Cr | 145,350.00 | 173,871.88 | 36,824.27 | 34,574.60 | 6,690.47 |
| Revenue TTM ₹ Cr | 223,202.00 | 34,098.00 | 1,677.33 | 14,254.86 | 2,800.60 |
| Net Profit TTM ₹ Cr | 10,097.00 | 10,511.00 | 295.32 | 1,434.66 | 204.09 |
| PE TTM | 15.49 | 22.42 | 121.27 | 23.27 | 28.61 |
| 1 Year Return | 51.19 | 29.22 | 283.48 | 128.04 | 90.86 |
| ROCE | 10.72 | 48.50 | 17.79 | 13.68 | 31.03 |
| ROE | 11.67 | 44.53 | 14.79 | 11.17 | 41.83 |
Equity Capital: 94,802.00 Cr FV: 1.00
| Period | MF Net Purchase / (sold) | FII Net |
|---|---|---|
| LAST 1M | 20,210.21 | -2,288.40 |
| LAST 3M | 84,754.55 | 29,178.29 |
| LAST 6M | 143,739.62 | 78,000.86 |
| LAST 12M | 219,616.53 | 194,185.36 |
| Date | Action Type | Ratio |
|---|---|---|
| Aug 14, 2023 | Dividend | 300 |
| Aug 11, 2022 | Dividend | 400 |
Hindalco Industries Ltd. is an aluminium and copper manufacturing company in India. It was incorporated in 1958 and is owned by the Aditya Birla Group. Its headquarters are in Mumbai. The company recorded a consolidated total income of Rs. 50,453 crore for the quarter ending December 2021. This was an income growth of Rs. 4.97% from the previous quarter. As of 23 May 2022, the market capitalisation of the company is worth Rs. 92,841 crore.
The company is listed on the Bombay Stock Exchange with the code 500440 and on the National Stock Exchange with the code HINDALCO.
Hindalco Industries’ aluminium units are spread across the country, and this apart, the company is engaged in a wide range of operations, including coal mining, aluminium smelting, downstream rolling, captive power plants, alumina refining, bauxite mining, extrusions, and foils. Novelis Aleris is a subsidiary of Hindalco Industries Ltd., which produces and sells aluminium sheets and light gauge products in Asia, North America, South America, and Europe.
As of March 2022, the shareholding pattern of the company indicates 34.64% promoter holding. IGH Holdings Private Limited and Birla Group Holdings Private Limited are the leading promoters with 15.58% and 10.16% shares, respectively. Foreign institutional investors hold 28.85% of shares, the public holds 16.96%, and mutual funds holding is 10.54%.
The top management of the company includes Mr Satish Pai as the managing director, Mr Praveen Kumar Maheshwari as the wholetime director and CFO, Mr Kailash Nath Bhandari, Ms Alka Marezban Bharucha, Dr Vikas Balia, Mr Sudhir Mital, Mr Anant Maheshwari, and Mr Yazdi Piroj Dandiwala as the directors.
Coming to the Hindalco share price, on 23 May 2022, the Hindalco share price in NSE was Rs. 413.15 and its share price in BSE was Rs. 413.35. The 52-week high for Hindalco share was Rs. 636, and the 52-week low was Rs. 359.80. Hindalco share price on 23 May 2022 was down by 3.65% in BSE and 3.72% in NSE.
The company has invested in four mutual funds, including 3.66% in ICICI Prudential Equity & Debt Fund Direct Growth, 3.32% in ICICI Prudential Value Discovery Direct Growth, 3.22% in Axis Arbitrage Fund Direct Growth, and 2.93% in Baroda BNP Paribas Large & Mid Cap Fund Direct Growth.
Disclaimer: ICICI Securities Ltd. (I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.
Ahura Centre 1st Floor B Wing, Mahakali Caves Road Andheri(E), Mumbai, Maharashtra, 400093
| Tel | : | 91-22-66917000 |
| : | hindalco:adityabirla.com; hilinvestors:adityabirla | |
| Website | : | http://www.adityabirla.com |
Hindalco Industries Ltd
| AGM Date (Month) | : | Aug |
| Face Value Equity Shares | : | 1 |
| Market Lot Equity Shares | : | 1 |
| BSE Code | : | 500440 |
| NSE Code | : | HINDALCO |
| Book Closure Date (Month) | : | Aug |
| BSE Group | : | A |
| ISIN | : | INE038A01020 |
FAQ’s on Hindalco Industries Ltd SharesYou can buy Hindalco Industries Ltd shares through a brokerage firm. ICICIdirect is a registered broker through which you can place orders to buy Hindalco Industries Ltd Share.
Company share prices and volatile and keep changing according to the market conditions. As of Apr 25, 2024 04:03 PM the closing price of Hindalco Industries Ltd was ₹ 646.80.
Market capitalization or market cap is determined by multiplying the current market price of a company’s shares with the total number of shares outstanding. As of Apr 25, 2024 04:03 PM, the market cap of Hindalco Industries Ltd stood at ₹ 145,350.00.
The latest PE ratio of Hindalco Industries Ltd as of Apr 25, 2024 04:03 PM is 15.49
The latest PB ratio of Hindalco Industries Ltd as of Apr 25, 2024 04:03 PM is 0.68
The 52-week high of Hindalco Industries Ltd share price is ₹ 648.25 while the 52-week low is ₹ 397.80
According to analyst recommendations, Hindalco Industries Ltd Share has a “Buy” rating for the long term.
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