Indian business reports healthy operational performance in Q4FY23
Q4FY23 Earnings Summary
India Business
For Q4FY23, Hindalco’s India business reported topline of Rs 20444 crore, up 4% YoY and 5% QoQ, higher than our estimate of Rs 19423 crore. For the quarter, Indian Aluminium business reported sales volume of 323000 tonnes (our estimate of 340000 tonnes). For the quarter, Indian Copper business reported sales volume of 117000 tonnes, higher than our estimate of 105000 tonnes
For Q4FY23, Hindalco’s Indian Business EBITDA (Business segment EBITDA) stood at Rs 2902 crore, up 27% QoQ, higher than our estimate of Rs 2510 crore
For the quarter, Hindalco’s Indian Aluminium Business EBITDA stood at Rs 2304 crore higher than our estimate of Rs 1958 crore. Of the overall India Aluminium Business EBITDA, upstream Aluminium Business EBITDA stood at Rs 2192 crore while downstream Aluminium Business EBITDA stood at Rs 112 crore. For the quarter, Hindalco’s Indian Copper Business EBITDA stood at Rs 598 crore, up 55% YoY and 10% QoQ, higher than our estimate of Rs 552 crore. The ensuing PAT of Hindalco’s India Business for Q4FY23 stood at Rs 1172 crore, higher than our estimate of Rs 917 crore
ICICIdirect Research view on Hindalco Industries Ltd Stock
View: Hindalco has a healthy business model, wherein its domestic aluminium operations is well integrated and the overseas operations Novelis has good value-added product basket. Over the last few years, Hindalco has focused towards its downstream strategy of increasing the share of value-added products across businesses to insulate itself from global price fluctuations.
Impact: Positive
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