Latest news with #HindalcoIndustries
Business Standard
6 days ago
- Business
- Business Standard
Hindalco spurts as Q1 profit jumps 30% YoY
Hindalco Industries rallied 5.41% to Rs 703.05 after reporting a strong set of June quarter numbers, aided by a stellar India Aluminium performance and resilient results from its US subsidiary Novelis. Consolidated net profit rose 30% year-on-year to Rs 4,004 crore in Q1 FY26 from Rs 3,074 crore in Q1 FY25. Revenue from operations grew 13% to Rs 64,232 crore from Rs 57,013 crore a year earlier. Profit before tax after exceptional items stood at Rs 5,676 crore in Q1 FY26, up 17% over Q1 FY25. EBITDA came in at Rs 8,673 crore, rising 9% year-on-year. The India Aluminium Upstream business delivered EBITDA of Rs 4,080 crore, up 17%, with margins of 44%, while the Aluminium Downstream segment posted a record EBITDA of Rs 229 crore, up 108% year-on-year. Copper EBITDA stood at Rs 673 crore, in line with company guidance. At Novelis, shipments grew 1% year-on-year to 963 KT, driven by an 8% jump in beverage can volumes. Cost-reduction initiatives remain on track, with the company targeting $100 million in annual run-rate savings by FY26 and $300 million by FY28. Key growth projects, including Bay Minette and India capacity expansions, are progressing as planned. The companys consolidated net debt-to-EBITDA ratio improved to 1.02x as of 30 June 2025, compared with 1.24x a year ago. Satish Pai, managing director, Hindalco Industries, said, "After the record profitability of FY25, Hindalco sustained its growth momentum with a strong first quarter performance, driven by operational efficiencies, cost control, and an enhanced product mix. Aluminium India Upstream business continued to outperform with industry-best EBITDA margins of 44%. Aluminium India Downstream had a stellar quarter and reported its strongest quarterly performance with 2x EBITDA growth. The Copper business delivered a healthy EBITDA in line with our guidance, despite lower TC/RCs. Novelis recorded 1% growth in shipments, driven by all-time high quarterly beverage can volumes and accelerated cost reduction initiatives. We made significant progress in our downstream growth projects: the 170 KT Aditya FRP project, Aluminium AC fins, and the Copper IGT facility are under commissioning. Looking ahead, our integrated business model, strategic investments and cost discipline, position us well to deliver sustained growth." Hindalco Industries is the worlds largest aluminium company by revenues, and the worlds second largest Copper rods manufacturer (outside China). It operates across the value chain, from bauxite mining, alumina refining, coal mining, captive power plants and aluminium smelting to downstream rolling, extrusions, and foils.
Mint
6 days ago
- Business
- Mint
Hindalco share price jumps over 5% after strong Q1 results; among top Nifty 50 gainers. Should you buy?
Hindalco share price rose by more than 5% during Wednesday's trading session, fueled by strong volume. The stock is currently trading as one of the leading gainers on the Nifty 50. Hindalco Industries reported a 30% increase in consolidated net profit, reaching ₹ 4,004 crore in the June quarter of FY26, attributed to improvements in operational efficiencies, cost management, and a better product mix. The Aditya Birla Group entity had reported a net profit (profit after tax) of ₹ 3,074 crore during the same April-June period of the previous financial year, as stated in a company announcement released on Tuesday. In the first quarter, the company noted a 13% increase in revenue from operations, which rose to ₹ 64,232 crore from ₹ 57,013 crore in the corresponding quarter last year, supported by higher average aluminium prices. The quarterly upstream revenue from the domestic aluminium sector climbed 6% to ₹ 9,331 crore, up from ₹ 8,839 crore in the June quarter of FY25.
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Business Standard
6 days ago
- Business
- Business Standard
Hindalco soars 6% on strong Q1 results; brokerages see upto 13% more upside
Hindalco Industries share price today Shares of Hindalco Industries soared 6 per cent to ₹705 on the BSE in Wednesday's intra-day trade on the back of a near two-fold jump in average trading volumes after the company reported strong June quarter earnings. At 11:19 AM; the stock price of the aluminium company was quoting 5.5 per cent higher at ₹703.3, as compared to 0.28 per cent rise in the BSE Sensex. A combined 7.25 million shares changed hands on the NSE and BSE. Q1 results – Hindalco Hindalco Industries, the Aditya Birla Group metals flagship, reported 9 per cent year-on-year (Y-o-Y) growth in consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) at ₹8,673 crore. Net profit increased by 30 per cent Y-o-Y to ₹4,004 crore. Revenue was up 13 per cent Y-o-Y at ₹64,232 crore. The earnings growth was primarily driven by favorable pricing. The company said robust results were driven by a strong performance by the India business, and a resilient performance by Novelis. India Aluminium Upstream business delivered an EBITDA of ₹4,080 crore, up 17 per cent, while Aluminium Downstream achieved a record EBITDA of ₹229 crore, up 108 per cent compared to Q1FY25. Brokerages view on Hindalco The long-term outlook for Hindalco continues to remain buoyant given resilient performance by India's aluminium operations; record high run rates in the copper business; enhanced coal security post acquisition of Meenakshi, Meenakshi west, Bandha, Chakla coal mines and growth capex to augment capacity in downstream business. Hindalco, given ~70 per cent plus steady/strong EBITDA being non-LME linked, remains a preferred play in the metal space, said analysts at JM Financial Institutional Securities in the Q1 result update. The brokerage firm reiterated its 'Buy' rating on the stock with a target price of ₹800, implying 13 per cent more upside. Novelis' earnings outlook is expected to remain soft in Q2, led by the tariff implications, but is likely to rebound in H2, driven by its mitigation plans. Additionally, we anticipate that strong domestic earnings will manage to offset the muted Novelis profitability for FY26. The ongoing capex in Novelis will establish Hindalco as the global leader in the beverage can and automotive FRP segments. Moreover, the commissioning of Bay Minette will reduce the import dependency and free up other US capacities for high-margin products, Motilal Oswal Financial Services said. The brokerage firm in the Q1 result update said it largely retains estimates and reiterates a 'Buy' rating on Hindalco with an SoTP-based target price of ₹790. Analysts at PL Capital believe Novelis' 9MFY26 to be impacted due to the tariffs and weak macro, however as the management. is taking mitigation initiatives along with higher MJP and stable scrap prices, EBITDA should improve gradually. The brokerage firm maintains an 'Accumulate' rating with revised target price of ₹762 (earlier ₹738), valuing Novelis at 6.5x & standalone ops at 5.5x EV of Mar'27E EBITDA. About Hindalco Industries Hindalco Industries is the world's largest aluminium company by revenues, and the world's second largest Copper rods manufacturer (outside China). Hindalco operates across the value chain, from bauxite mining, alumina refining, coal mining, captive power plants and aluminium smelting to downstream rolling, extrusions, and foils. Along with its subsidiary Novelis, Hindalco is the global leader in flat rolled products and the world's largest recycler of aluminium.
Time of India
7 days ago
- Business
- Time of India
Hindalco's 30% net jump in June quarter puts Novelis revival in strong focus
The worst is over for Novelis on several fronts, said Satish Pai, managing director of Hindalco Industries . "By the second half of this year, you should start to see a very positive turn for Novelis," he said on Tuesday. Hindalco Industries, which reported consolidated earnings on Tuesday, posted a 30% rise in consolidated net profit for the June quarter at ₹4,004 crore, with consolidated revenue from operations up 13% at ₹64,232 crore. Finance Value and Valuation Masterclass - Batch 4 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program Finance Value and Valuation Masterclass - Batch 3 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals By Vaibhav Sisinity View Program Finance Value and Valuation Masterclass - Batch 2 By CA Himanshu Jain View Program Finance Value and Valuation Masterclass Batch-1 By CA Himanshu Jain View Program Novelis, the wholly-owned US-based subsidiary, saw a 36% drop in net income for the June quarter at $96 million, while adjusted EBITDA per tonne of aluminium was $432, down 18% year-on-year. Structurally higher scrap prices dented performance during the quarter, Novelis said on Monday. "Scrap spreads have started to improve, particularly in the US. So, we are now hoping that will get better in the coming quarters," Pai said on Tuesday. "The supply of scrap in the US has also gone up, so scrap spreads are no longer a headwind, but have started to become a tailwind," he told reporters after the earnings call. The September and December quarters of last fiscal marked the peak in scrap prices, Pai said, with prices now turning favourable. Live Events While the June quarter marks the "bottom" in many ways, the September quarter will be similar. "By Q3 and Q4 of this year, you are going to see a much stronger and healthier Novelis," Pai said. Earnings in the second half will reflect the impact of scrap spread mitigation, cost reduction measures and improving spreads, he added. For the upstream aluminium business in India, Hindalco's EBITDA rose 17% year-on-year to ₹4,080 crore. Upstream EBITDA per tonne stood at $1,467, up 15% from a year earlier. In the downstream aluminium business, EBITDA per tonne jumped 92% year-on-year to $264, while EBITDA hit a record ₹229 crore, up 108% year-on-year. In the copper business, EBITDA was ₹673 crore, with sharply lower TC/RCs offset by higher sulphuric acid realisations, the company said. At the consolidated level, EBITDA rose 9% year-on-year to ₹8,673 crore. Hindalco announced earnings during market hours, with its shares closing at ₹666.95 on the BSE, down 0.7% from the previous close.
Economic Times
7 days ago
- Business
- Economic Times
Hindalco Q1 profit rises 30% as Novelis outlook brightens for H2
The worst is behind for Novelis in several ways, said Satish Pai, managing director of Hindalco Industries. ADVERTISEMENT 'By the second half of this year, you should start to see a very positive turn to Novelis,' he said on Tuesday. Hindalco Industries, which reported its consolidated earnings on Tuesday, saw a 30% jump in its consolidated net profit for the June quarter at Rs 4,004 crore, with consolidated revenue from operations 13% higher at Rs 64,232 crore. Novelis, the wholly-owned US-based subsidiary of the company, reported a 36% fall in its net income for the June quarter at $96 million, while the adjusted EBITDA made on each tonne of aluminium stood at $432, down by 18% on-year. Structurally higher scrap prices negatively impacted performance during the quarter, Novelis said on Monday.'Scrap spreads have started to improve, most particularly in the US. So, we are now hoping, that will get better in the coming quarters,' Pai said on Tuesday. 'The supply of scrap in the US has also gone up, so scrap spreads are no more a headwind, but have started to become a tailwind,' he said on a call after the company's quarterly September and December quarters of the last fiscal were the peak in terms of scrap prices, he said, with prices now turning favourable. ADVERTISEMENT While the June quarter is the 'bottom' in many ways, the September quarter will be similar. 'By Q3, Q4 of this year, you are going to see a much stronger and healthier Novelis,' he said. Earnings in the second half of the year will reflect the impact of mitigation of the spreads, cost reduction programmes and the scrap spreads improving, Pai said. Unlock 500+ Stock Recos on App For its upstream aluminium business in India, Hindalco's earnings before interest, tax, depreciation and amortization (EBITDA) rose 17% on-year to Rs 4,080 crore. The upstream EBITDA per tonne stood at $1,467, up 15% compared to the previous year. In the downstream aluminium business, EBITDA per tonne surged 92% on-year to $264, while EBITDA was at a record high of Rs 229 crore, up 108% on-year. ADVERTISEMENT In the copper business, EBITDA stood at Rs 673 crore, with the sharply declining TC/RCs offset by higher realisation from sulphuric acid, the company said in a statement. At a consolidated level, the company's EBITDA rose 9% on-year to Rs 8,673 reported its earnings during market hours and its shares closed at Rs 666.95 apiece on the BSE, down 0.7% from the previous close. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
