Hindalco reports strong Q1FY'25 results; consolidated EBITDA jumps 31% y-o-y

Hindalco Industries Limited, the flagship metals company of the Aditya Birla Group, has announced strong consolidated results for the first quarter of financial year (Q1FY'25). The company reported a consolidated net profit of INR 3,074 crore, marking a 25% y-o-y increase, driven by favourable macroeconomic conditions, operational efficiencies, and lower input costs.

For Q1FY'25, Hindalco achieved a consolidated EBITDA of INR 7,992 crore, up 31% from the previous year. The aluminium upstream segment experienced a significant 81% increase in EBITDA, reaching INR 3,493 crore, with industry-leading margins of 40%. The copper business delivered a record-breaking EBITDA of INR 805 crore, up 52% y-o-y, bolstered by higher copper prices and robust operational performance.

Novelis

Novelis, a key segment of Hindalco, reported an adjusted EBITDA per tonne (t) of $525, up 10% y-o-y. Novelis' revenue for the quarter was $4.2 billion, a 2% increase from the previous year, driven by higher aluminium prices and increased shipments. However, net income attributable to common shareholders was $151 million, a 3% decrease y-o-y, impacted by initial charges related to flooding at the Sierre plant in Switzerland and higher restructuring costs.

Aluminium

In Q1FY'25, the upstream segment reported revenue of INR 8,839 crore, compared to INR 8,064 crore in the same period of last year. The aluminium upstream EBITDA surged to INR 3,493 crore, up 81% y-o-y from INR 1,935 crore in Q1FY'24, driven by lower input costs. The segment's EBITDA margins of 40% are the highest globally.

Downstream revenue reached INR 2,868 crore in Q1FY'25, up from INR 2,435 crore a year earlier. Sales of downstream aluminium increased to 96,000 t, up from 81,000 t in Q1FY'24, reflecting an 18% y-o-y growth. However, downstream EBITDA per tonne declined to $138 in Q1FY'25 from $202 in Q1FY'24, a decrease of 32% y-o-y.

Copper

In Q1FY'25, the copper business reported revenue of INR 13,292 crore, a 16% y-o-y increase, driven by improved shipments and realisations. EBITDA reached a record INR 805 crore, up 52% from INR 531 crore in Q1FY'24, fuelled by rising copper prices and efficient operations. Copper metal sales totalled 119,000 t, slightly up from 118,000 t, while copper continuous cast rod (CCR) sales increased to 100,000 t from 98,000 t, marking a 2% y-o-y rise, reflecting growing demand for value-added products.

Business updates

Novelis' Bay Minette project is progressing as planned and is expected to be completed by the second half of calendar year 2026 (H2'CY26). The expansion of Aditya FRP in Odisha is also on track, with commissioning scheduled for FY'26. Additionally, the Silvassa plant is ramping up its extrusion production to meet growing demand.