Hindalco Q4 profit jumps manifold, 350% dividend recommended.
Hindalco, a key player in aluminum and copper manufacturing, witnessed a remarkable surge in net profit for Q4 FY24, alongside revenue growth and margin expansion.
Hindalco, a leading manufacturer of aluminum and copper, disclosed a significant surge in its net profit to ₹8,174 crore for the quarter spanning January to March 2024, as per the firm's regulatory filing on May 24th. This represents more than a threefold increase compared to the profit of ₹2,411 crore recorded in the fourth quarter of the preceding fiscal year. Despite a marginal 0.2% year-on-year increase, the company's revenue for the reviewed quarter stood at ₹55,995 crore, compared to ₹55,857 crore in the corresponding quarter of the previous year.
In the fourth quarter of the fiscal year 2023-24, Hindalco, the flagship metals company of the Aditya Birla Group, witnessed a 250 basis points expansion in its margin, reaching 12% compared to 9.5% in the previous year. The EBITDA for the quarter was ₹6,681 crore, marking a growth over the same quarter of the previous financial year. Notably, the EBITDA for the total India business (Standalone + Utkal) reached ₹3,637 crore, surpassing the CNBC-TV18 poll projection of ₹2,836 crore. The EBITDA for the aluminum business reached ₹2,861 crore, exceeding the poll estimate of ₹2,200 crore, while the EBITDA for the copper business amounted to ₹776 crore against the poll projection of ₹630 crore.
Furthermore, Hindalco proposed a dividend of ₹3.50 per equity share of ₹1 each for the fiscal year ending March 31, 2024, subject to shareholder approval at the upcoming annual general meeting. In addition to its financial results, Hindalco announced its Board of Directors' approval for the acquisition of HBT's fabrication facility through a binding MoU, to be executed via a Special Purpose Vehicle, pending due diligence, definitive agreements, customary closing conditions, and requisite approvals.
Satish Pai, Managing Director of Hindalco Industries, noted that the copper business achieved a significant milestone, emerging as the world's second-largest for Copper rods (excluding China), with record-breaking sales exceeding 500,000 tonnes for the first time and achieving an all-time high EBITDA for both the quarter and the year. He also highlighted the Aluminum India Upstream Business, reporting industry-leading quarterly EBITDA margins of 32%, driven by increased volumes and cost optimization. Pai further mentioned that Novelis demonstrated an enhanced EBITDA per tonne, attributed to reduced operating costs, favorable metal benefits, and market recovery.
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