Resilient operational performance despite inflationary and macro-economic challenges
All-time high Full Year Consolidated Revenue at Rs.2,23,202 crore
Industry-best Aluminium Upstream EBITDA per ton at $825 in Q4
Highest-ever Copper EBITDA at Rs.598 crore in Q4
Q4 FY23 Performance (vs Q4 FY22)
- Consolidated revenue at Rs.55,857 crore, similar YoY, up 5 per cent sequentially
- Consolidated PAT at Rs.2,411 crore, down 37 per cent YoY, up 77 per cent sequentially
- Consolidated EBITDA at Rs.5,818 crore, down 23 per cent YoY, up 48 per cent sequentially
- All-time high quarterly Copper EBITDA at Rs.598 crore, up 55 per cent YoY, up 10 per cent QoQ
- Novelis’ Adjusted EBITDA per ton at $431*, down 1 per cent YoY, up 15 per cent QoQ
- Novelis’ Net Income at $175 million*, down 7 per cent YoY, up 82 per cent sequentially
- Hindalco begins delivery of low-carbon aluminium to global customers
FY23 Performance (vs FY22)
- Consolidated revenue at Rs.2,23,202 crore, up 14 per cent YoY
- Consolidated PAT at Rs.10,097 crore, down 26 per cent YoY
- Consolidated EBITDA at Rs.24,131 crore, down 20 per cent YoY
- All-time high Aluminium Downstream EBITDA at Rs.627 crore, up 64 per cent YoY
- All-time high Copper EBITDA at Rs.2,253 crore, up 62 per cent YoY
- Consolidated Net Debt to EBITDA at 1.39x as of 31 March 2023 vs 1.36x a year ago
- Hindalco-Novelis in the top 1 per cent S&P Global ESG score in the Aluminium Industry
- Board recommends dividend @300 per cent (Rs.3/share) for FY23 vs 400 per cent(Rs.4/share) for FY22
*As per US GAAP
Mumbai: Hindalco Industries Limited, the Aditya Birla Group metals flagship, reported a consolidated quarterly Net Profit of Rs.2,411 crore, a sequential growth of 77 per cent, driven by a continued focus on cost control and a resilient operational performance by India business. Novelis delivered an improved quarter-on-quarter performance with Net Income of $175 million, up 82 per cent sequentially.
Consolidated revenue for the full year touched an all-time high of Rs.2,23,202 crore, up 14 per cent YoY.
Copper Business delivered an exemplary performance in FY23, with EBITDA at a record Rs.2,253 crore, up 62 per cent YoY, backed by record copper rod production and domestic sales.
Aluminium Downstream EBITDA for the year was at an all-time high of Rs.627 crore, up 64 per cent YoY, due to better pricing and volumes. Aluminium Upstream reported higher revenues for FY23 at Rs.33,010 crore, up 7 per cent due to higher metal volumes. However, EBITDA for the full year was impacted by inflationary pressures. Despite macro-economic headwinds, Hindalco maintained a strong balance sheet and liquidity position which helped the company keep the Net Debt to EBITDA ratio below 2x.
Consolidated Financial Highlights for the Quarter and Year ended March 31, 2023
|Particulars||Q4 FY22||Q3 FY23||Q4 FY23||FY22||FY23|
|Revenue from Operations||55,764||53,151||55,857||1,95,059||2,23,202|
|Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA)|
|Business Segment EBITDA||7,516||5,142||6,216||29,497||25,825|
|Inter Segment Profit/ (Loss) Elimination (Net)||(19)||101||(58)||(264)||414|
|Unallocable Income/ (Expense) – (Net) & GAAP Adjustments||100||(1,313)||(340)||823||(2,108)|
|Depreciation & Amortisation (including impairment)||1,761||1,784||1,995||6,884||7,294|
|Share in Profit/ (Loss) in Equity Accounted Investments (Net of Tax)||1||2||2||6||9|
|Profit before Exceptional Items and Tax||5,032||1,214||2,839||19,410||13,200|
|Exceptional Income/ (Expenses) (Net)||(251)||–||–||164||41|
|Profit Before Tax (After Exceptional Item)||4,781||1,214||2,839||19,574||13,241|
|Profit/ (Loss) from Continuing Operations||3,860||1,362||2,411||14,201||10,097|
|Profit/ (Loss) from Discontinued Operations||(9)||–||–||(471)||–|
|Profit/ (Loss) After Tax||3,851||1,362||2,411||13,730||10,097|
Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries, said, “Our diversified business model continues to drive Hindalco’s resilient performance in challenging times. Our Copper Business delivered exceptional results recording its highest-ever EBITDA, driven by robust market demand, stable operations and higher value-added product sales. Our India Aluminium Downstream Business, which experienced its highest-ever EBITDA growth in FY23, reflects our strategic focus on enhancing this segment. Despite macroeconomic headwinds, Novelis has shown quarter-on-quarter recovery supported by improved product pricing and favourable product mix.
Looking ahead, a Net-Debt-Free India business and a strong balance sheet will continue to power our ambitions for organic growth. We also continue to drive our holistic ESG approach with specific targetsthat go beyond carbon emissions, and encompass other planet-critical aspects like waste, biodiversity, water positivity, and community inclusion.”
Consolidated revenue for the fourth quarter stood at Rs.55,857 crore (vs Rs.55,764 crore), similar YoY and up 5 per cent QoQ, on account of better realisations and volumes in India operations.
Hindalco reported an EBITDA of Rs.5,818 crore (vs Rs.7,597 crore) in Q4 FY23, down 23 per cent YoY, impacted by higher input costs and unfavourable macros, partially offset by better operational performance of Copper Business. On a sequential basis, EBITDA was up 48 per cent driven by better performance of India Aluminium and Copper Business and Novelis.
Consolidated PAT in Q4 FY23 was Rs.2,411 crore compared to Rs.3,851 crore in Q4 FY22, lower by 37 per cent YoY, and up 77 per cent QoQ. Consolidated Net Debt to EBITDA stood at 1.39x as of 31 March 2023 vs 1.36x as of 31 March 2022.
Business Segment Performance in Q4 FY23 (vs Q4 FY22)
Total shipments of flat rolled products were at 936 Kt in Q4 FY23 vs 987 Kt in Q4 FY22, down 5 per cent YoY, and up 3 per cent QoQ supported by higher aerospace and record automotive shipments in Q4. Novelis’ revenue in Q4 FY23 stood at $4.4 billion (vs $4.8 billion), down 8 per cent YoY, impacted by lower average aluminium prices and subdued sales volume YoY. Novelis reported an adjusted EBITDA of $403 million (vs $431 million), down 6 per cent YoY, and up 18 per cent QoQ supported by higher product pricing and volumes product mix. Novelis’ adjusted EBITDA per ton at $431 was down 1 per cent YoY, and up 15 per cent sequentially. Net income from continuing operations, excluding special items, was $175 million in Q4 FY23, a decline of 7 per cent YoY, and up 82 per cent QoQ.
Quarterly Upstream revenue was Rs.8,050 crore in Q4 FY23 vs Rs.9,253 crore in the prior year period. Aluminium Upstream EBITDA stood at Rs.2,192 crore in Q4 FY23, compared with Rs.3,742 crore for Q4 FY22, down 41 per cent YoY, and up 38 per cent QoQ supported by lower input costs. Upstream EBITDA margins were at 27 per cent and continue to be one of the best in the global industry.
Downstream revenue was Rs.2,738 crore in Q4 FY23 vs Rs.3,282 crore in the prior year period. Sales of Downstream Aluminium stood at 90 Kt vs 93 Kt in Q4 FY22, down 4 per cent YoY, and down 1 per cent sequentially.
Downstream EBITDA stood at Rs.112 crore in Q4 FY23, compared to Rs.140 crore for Q4 FY22, down 20 per cent YoY and down 29 per cent QoQ. Downstream EBITDA for the year was at an all-time high of Rs.627 crore, up 64 per cent YoY, driven by better pricing and volumes.
Quarterly revenue from the Copper Business stood at Rs.11,206 crore, up 14 per cent YoY, on account of higher global prices of copper and higher volumes. EBITDA for the Copper Business was at an all-time high of Rs.598 crore in Q4 FY23 compared to Rs.387 crore in Q4 FY22, up 55 per cent YoY, and up 10 per cent QoQ backed by continued stable operations, higher domestic sales, and better TC/RCs. Quarterly Copper metal sales were at a record 117 Kt (vs 105 Kt). Copper Continuous Cast Rod (CCR) sales also touched a record 95 Kt in Q4 FY23 (vs 74 Kt), up 28 per cent YoY in line with growing market demand for value added products.
Business Updates & Recognition
- 34 Kt aluminium extrusions plant in Silvassa begins commercial production
- Hindalco begins delivery of low-carbon aluminium to global customers
- Additional 350 Kt expansion via debottlenecking at Utkal Alumina in progress
- Winner of the ‘KPMG India ESG Conclave and Awards 2023’ in the industrial manufacturing and automotive sector
- Winner of the ‘Best Annual Report Award FY22’ in the Mining and Metals sector by Free Press Journal and Grant Thornton Bharat LLP
- Among ‘India’s 40 Best Workplaces in Health and Wellness 2022’ by Great Places to Work® Institute (India)
- Hindalco-Novelis in the top 1 per cent S&P Global ESG score in the aluminium industry in 2022 with a score of 83/100
About Hindalco Industries Limited
Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group. A $28 billion metals powerhouse, Hindalco is the world’s largest aluminium company by revenues, and a major player in copper serving more than half of India’s copper requirement.
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.
Hindalco’s copper facility in India comprises a world-class copper smelter, downstream facilities, and a captive jetty. The copper smelter is among the world’s largest custom smelters at a single location.
Hindalco’s global footprint spans 50 manufacturing units across 10 countries. Hindalco was named the world’s most sustainable aluminium company in the Dow Jones Sustainability Indices (DJSI) in 2020, 2021 and 2022.
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