The company posted a 52.6 per cent YoY jump in consolidated revenue from operations to Rs 47,665 crore, which was also sharply above Street’s estimate.
“Our record-breaking performance this quarter is an affirmation of our fully integrated business model, which powers our performance in both upstream and downstream markets,” said Satish Pai, managing director at Hindalco Industries.
The strong performance of the company was largely down to the record-breaking show from arm Novelis, which reported a 38 per cent on-year rise in revenues at $4.1 billion. Novelis also reported record quarterly operating profit of $553 million, which was higher by 22 per cent when compared to year-ago quarter.
Novelis once again achieved a record EBITDA per ton driven by higher volumes and favourable metal prices, Pai said.
At home, the India aluminium business had a trailblazing quarter with record high operating profits. The aluminium business saw its adjusted operating profit rise 173 per cent YoY to Rs 3,247 crore while its operating margins hit a decade high of 42 per cent in the reported quarter.
Overall, the Indian business reported a record high quarterly net profit of Rs 1,815 crore, up 455 per cent on-year. The business also reported record operating profit of Rs 3,715 crore, which rose 152 per cent on-year.
Hindalco said that its quarterly performance was largely driven by favourable macroeconomic conditions, strategic product mix, higher volumes and stability in operations.
On the operating front, Hindalco had a strong quarter as consolidated operating profit jumped 56 per cent YoY to Rs 8,048 crore. The company’s consolidated operating margin expanded by 33 basis points on-year to 16.88 per cent.
Benefiting from the upswing in the business and its intention to reduce the leverage on its balance sheet, Hindalco saw its consolidated net debt-to-operating profit decline to 1.93 at the end of the September quarter from 2.59 at the end of the March quarter.
Hindalco said the integration of Aleris Corp into the arm Novelis continued with nearly $100 million of cost synergies achieved in the quarter.
“Our product-rich portfolio strategy continues to deliver results across diverse market scenarios. It encourages us to keep building the downstream asset base and expand our market footprint,” Pai said.
Shares of Hindalco were up 3.3 per cent at Rs 468.9 on the National Stock Exchange.
