Aditya Birla Group's metals flagship Hindalco Industries posted its highest ever profit and sales in the June quarter, boosted by a near-50% on-year jump in aluminium prices and recovery at its US subsidiary Novelis. Hindalco will now focus on project execution, managing director Satish Pai said.For the June quarter, consolidated bottom line rose 75% to ₹7,013 crore, while revenue from operations rose 32% to ₹84,825 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) jumped 73% to ₹14,989 crore. The stock surged on BSE and NSE.All three metrics - the bottom line, the top line and operating profits - were at record highs, underpinned by the surge in aluminium prices. To be sure, prices might relatively soften in the three months to September.'Tight Market' "The average (aluminium prices) in Q2 will be more like $3,200 (per tonne), which is about $250 lower than Q1," Pai said on a post-earnings call. "But generally on a supply-demand basis, the aluminium (market) is very tight. Inventories are at an all-time low."Average prices of aluminium in the June quarter were $3,577 per tonne on the London Metal Exchange (LME), the global benchmark for the industrial metal.The West Asian crisis led to the largest-ever supply shock for aluminium, driving up prices on the LME. This is likely to lead to a global deficit of 1 million tonne of aluminium in 2026, up from 300,000 tonne estimated before the conflict.Hindalco, its MD said, will now focus on executing projects that are in various stages of completion.Execution Focus"We have Rs 50,000 crore of projects ongoing now involving refineries, smelters, the copper recycling plant and the copper smelter," Pai said. "The biggest focus of the whole management team is to deliver those projects on time - and on budget."The company's current upstream projects include the Aditya alumina refinery, two phases of the Aditya aluminium smelter and its copper smelter, while downstream projects include the battery enclosure at Chakan, AC Fins, and the Aditya Flat Rolled Products.
Hindalco posts record Q1 profit of Rs 7,013 crore as aluminium prices soar
Hindalco Industries achieved record-breaking profit and sales in the June quarter, largely due to a surge of nearly fifty percent in aluminum prices. Their US subsidiary, Novelis, played a key role in this financial success. Moving forward, Hindalco plans to focus on executing various projects, including refineries, smelters, and recycling plants, as part of their strategy for future growth.
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