Now Reading: Hindalco Q1 net profit surges 75% to Rs 7,013 crore
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Hindalco Q1 net profit surges 75% to Rs 7,013 crore
Hindalco Industries posted a 75% jump in consolidated net profit to Rs 7,013 crore for the June quarter, with revenue rising 32% to Rs 84,825 crore. The Aditya Birla Group company benefited…
The Story in Brief
Hindalco Industries posted a 75% jump in consolidated net profit to Rs 7,013 crore for the June quarter, with revenue rising 32% to Rs 84,825 crore. The Aditya Birla Group company benefited from aluminium prices on the London Metal Exchange surging to $3,577 per tonne from $2,447 a year earlier, driven by what it called the largest-ever supply shock from the West Asia conflict.
Novelis, its US subsidiary, recorded a 37% improvement in EBITDA after restarting its Oswego hot mill in June. The company had achieved over $225 million in run-rate cost savings by quarter-end. Hindalco's aluminium upstream business posted its highest-ever quarterly EBITDA of Rs 7,390 crore, up 81% year on year. Copper EBITDA rose 36% to Rs 918 crore.
The Indian Opinion
The media narrative presents Hindalco's stellar quarter as pure management skill, but two big external forces deserve equal credit: the West Asia supply shock that pushed LME aluminium prices up 46% year-on-year, and Novelis restarting its Oswego mill after a prolonged shutdown. The real test is whether Hindalco can sustain this momentum when supply constraints ease and global demand normalises. Watch how much of the Rs 225 million in cost savings Novelis turns into permanent margin improvement.
Sources (2): economictimes.indiatimes.com, thehindu.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
