Hindalco Q2 Results: Aluminium EBITDA beats estimates, standalone margins expand

Hindalco Ltd., the Aditya Birla Group mining company reported a net profit growth of 20% on a standalone basis for the July to September quarter. Numbers were reported during market hours on Friday, November 7, post which, the stock declined from the highs of the day.

Net profit for the quarter stood at ₹2,266 crore on a standalone basis, compared to a profit of ₹1,891 crore during the same quarter last year.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 36% on a year-on-year basis to ₹3,740 crore from ₹2,749 crore, while margins expanded to 15% from 12.3% last year.

The company's revenue grew by 11.3% from the year-ago quarter to ₹24,780 crore from ₹22,262 crore.

Hindalco's Aluminium business EBITDA stood at ₹4,785 crore, which is higher than the CNBC-TV18 poll estimate of ₹4,680 crore, while EBITDA for the Copper business, at ₹634 crore, was marginally lower than the CNBC-TV18 poll figure of ₹670 crore.

In a separate exchange filing, Hindalco announced that it will be adding further capacity at its unit Aditya Aluminum. The current 370KT capacity, which is being utilized 100%, is proposed to be expanded by another 193KT, Hindalco said in a statement.

Hindalco said that the proposed capacity expansion will entail an investment of ₹10,225 crore, which will be financed via internal accruals and debt, and is likely to come on stream by financial year 2029.

Shares of Hindalco are off the highs of the day, but are trading 0.7% higher at ₹794.3. The company's subsidiary Novelis reported results earlier in the week, after which the stock saw a sharp fall on Thursday, as its net debt increased to the highest level in 21 quarters and cost overruns were also reported for its capacity expansion project.