- 27 May 2024
- ICICI Securities
HINDALCO LTD REPORTED ROBUST PERFORMANCE IN Q4FY24
HINDALCO - 650 Change: 2.35 (0.36 %)News: On consolidated basis, Total operating income for the quarter came in at ₹55,994 crore (flat YoY, up 6% QoQ) with Novelis sales volume broadly flat YoY at 951 kt. India aluminium downstream and upstream volumes were healthy at 105 kt (up 17% YoY) and 337 kt (up 4% YoY), respectively. India coper segment reported all time high sales volume for a quarter at 135 kt, up by 16% YoY. Reported consolidated EBITDA for the quarter stood at ₹6,838 crore (up 26% YoY) with corresponding EBITDA margins at 12.2%, up 250 bps YoY. EBITDA/tonne for Novelis was at $540/tonne (up 25% YoY), while aluminium upstream and downstream were at $967/tonne (up 17% YoY) and $174/tonne (up 15% YoY). EBITDA/tonne for copper was at $692/tonne (up 12% YoY). PAT in Q4FY24 stood at ₹3,174 crore, up 32% YoY.
Views: EBITDA improvement during the quarter can largely be attributed to higher shipment volumes and lower operating cost. As per management, overall cost of production is expected to decline further by 1%-2% in Q1FY25, which will support EBITDA margins going forward. The company has maintained a healthy balance sheet, with current Consolidated Net Debt to EBITDA at 1.5x v/s 1.6x in FY23. We have a positive stance on the stock, driven by healthy demand for Aluminium metal due to its incremental application in automobile and renewable spaces, strategic capacity expansion at Novelis and Hindalco and controlled leverage on B/S with Debt to Equity at ~0.5x.
Impact: Positive