The profit was higher than the Street estimate of Rs 1,294 crore. Revenue from operations increased 8% YoY to Rs 22,262 crore in the reporting period.
Strong profit growth was driven by robust operational performance by the India business, favourable macros and prudent cost management.
Segment-wise, Novelis’ performance was impacted by the Sierre flood and tightening of scrap spreads. Novelis revenue for the quarter came in at $4.3 billion, up 5%, driven by higher average aluminium prices.
Adjusted EBITDA for Novelis at $462 million was down 5% due to less favourable metal benefit, unfavourable product mix, and $25 million flood impact at Sierre. Excluding the Sierre flood impact, shipments grew by 4% and EBITDA per tonne was at $502.
Novelis’ net income was down 18% to $128 million, affected by $61 million in charges from Sierre production interruptions along with restructuring and impairment costs.Aluminium Upstream EBITDA per tonne during the quarter stood at $1,349, up 80%, with industry-best margins of 41%. The segment’s EBITDA was up 79% to Rs 3,709 crore supported by lower input cost.Downstream aluminium revenue during the quarter was at Rs 3,161 crore, up 20%. Sales of downstream aluminium stood at 103 KT, up 10%.
The copper business delivered another record-breaking performance in Q2, with EBITDA at an all-time high of Rs 829 crore, up 27%. Quarterly revenue for the segment rose 5% to Rs 13,114 crore.
“During the quarter, we made significant progress across our growth projects in India Business and Novelis. Our company’s robust cash flow generation enabled us to maintain a consolidated net debt-toEBITDA ratio below 1.2x,” said Satish Pai, Managing Director, Hindalco Industries.
On Monday, Hindalco shares closed 0.7% higher at Rs 655.05 on the NSE.