Hindalco Reports Stellar Consolidated Q1 FY22 Results

06 August 2021

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Novelis and Aluminium India Business drive highest-ever quarterly net profits

Key Highlights of Q1 FY22

  • All-time high Consolidated EBITDA at Rs.6,790 crore, up 188% YoY and 16% QoQ
  • All-time high Consolidated PAT at Rs.2,787 crore, up 493% YoY and 45% QoQ
  • All-time high Novelis quarterly Adjusted EBITDA at $555* million, up 119% YoY and 10% QoQ
  • Novelis quarterly Adjusted EBITDA per ton at $570*, up 75% YoY and 11% QoQ
  • Novelis Net Income from continuing operations at $303* million, up 597% YoY and 1082% QoQ
  • All-time high quarterly India Business EBITDA at Rs.2,513 crore, up 121% YoY; 32% increase sequentially
  • All-time high quarterly India Business PAT at Rs.1,037 crore, up 1135% YoY; 59% increase sequentially
  • All-time high quarterly Aluminium India EBITDA at Rs.2,352 crore, up 142% YoY and 29% QoQ; EBITDA margins of 37.5%, highest in last 13 years
  • Consolidated Net Debt to EBITDA improved further to 2.36x as of June 30, 2021 vs the peak of 3.83x as of June 30, 2020
  • S&P Global Ratings raised its issuer credit rating on Novelis to 'BB’ from 'BB-’
  • Credit Rating upgraded by CRISIL from ‘AA’ to ‘AA+’ with ‘Stable’ outlook for Hindalco bonds

*As per US GAAP

MUMBAI, August 06, 2021: Hindalco Industries Limited, the Aditya Birla Group metals flagship, delivered stellar results in Q1 FY22 recording its highest-ever quarterly net profits.

The Company’s consolidated PAT was at Rs.2,787 crore, which is a noteworthy increase of nearly 500% YoY. The results were driven by a strong performance by Novelis and India Business, supported by favorable macros, strategic product mix, and stability in operations. Novelis reported an all-time high quarterly EBITDA, as a result of upswing in demand for innovative and sustainable aluminium products and an outstanding operational performance.

Consolidated Financial Highlights for the Quarter ended June 30, 2021

Particulars (Rs. crore)
Q1 FY21 Q4 FY21 Q1 FY22
Revenue from Operations 25,283 40,507 41,358
Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA)      
Novelis* 1,919 3,705 4,090
Aluminium 973 1,820 2,352
Copper 66 322 261
All Other Segments 1 13 (6)
Business Segment EBITDA 2,959 5,860 6,697
Unallocable Income/ (Expense) - (Net) & GAAP Adjustments (600) (15) 93
EBITDA 2,359 5,845 6,790
Finance Costs 992 903 820
PBDT 1,367 4,942 5,970
Depreciation & Amortisation (including impairment) 1,551 1,722 1,649
Share in Profit/ (Loss) in Equity Accounted Investments (Net of Tax) 3 - 2
Profit before Exceptional Items and Tax (181) 3,220 4,323
Exceptional Income/ (Expenses) (Net)# (419) 34 2230
Profit Before Tax (After Exceptional Item) (600) 3,254 4,553
Tax (31) 1,309 1,299
Profit/ (Loss) from Continuing Operations (569) 1,945 3,254
Profit/ (Loss) from Discontinued Operations (140) (17) (467)
Profit/ (Loss) After Tax (709) 1,928 2,787
*As per US GAAP ;
# Exceptional Income / (Expenses) for Q1FY22, exclude ?346 crore (net of litigation cost of ?9 crore) which represents the principal portion on PIS and COFINS related tax credit income as it is included in the Novelis segment result

Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries Ltd., said, “This quarter we delivered record-breaking financial results despite the impact of the Covid second wave. Our robust financial performance, accelerated pace of deleveraging and the increasing strength of our balance sheet has been recognised by the market and is reflected in credit rating upgrades for both Novelis and Hindalco.

The improvement is visible across all our business segments where we are seeing strong demand, plants running at capacity, and better margins. We continue to keep employees protected and de-risk plant facilities by taking all Covid-appropriate measures. We have started FY22 at a strong pace and we are confident that our resilience against market swings will support us in continuing to deliver our best. More importantly, we believe our focus on setting and achieving carbon neutrality and other ESG goals will keep Hindalco in the leadership position as the world’s most sustainable aluminium value-added player.”

Business Segment Performance in Q1 FY22 (vs Q1 FY21)


Novelis recorded its best-ever quarterly Adjusted EBITDA of $555 million (vs $253 million), up 119% YoY, on the back of higher volumes, favourable product mix and metal benefits, and a $47 million gain related to a favourable decision in a Brazilian tax litigation.

Novelis achieved an Adjusted EBITDA per ton of $570 in Q1 FY22, compared to $327 in the prior year, an increase of 75% YoY. Excluding the non-recurring tax litigation benefit, Adjusted EBITDA per ton equates to $522 in the first quarter of FY22.

Novelis’ Net Income (excluding tax-effected special items) was $260 million, up 1082% YoY, driven by higher Adjusted EBITDA. Revenue was $3.9 billion (vs $2.4 billion), up 59% YoY, due to higher shipments, global aluminium prices and market premiums. Total shipments of flat rolled products (FRPs) were at 973 Kt (vs 774 Kt), up 26% YoY, with strong demand across end-product markets particularly beverage packaging and specialty products, partially offset by some headwinds in the automotive industry on account of the semiconductor chip shortage.

Aluminium India

EBITDA was at an all-time high of Rs.2,352 crore in Q1 FY22, compared with Rs.973 crore for Q1 FY21, an increase of 142% YoY, primarily due to favourable macros, improved product mix and better operational efficiencies. EBITDA margins reached a 13-year high of 37.5% and continue to be among the best in the industry. Revenue was Rs.6,267 crore in Q1 FY22 vs Rs.4,436 crore in the prior year period. Aluminium India Business recorded metal production of 319 Kt vs 291 Kt in the corresponding period. Aluminium metal sales were flat YoY at 303 Kt. Aluminium VAP (excluding wire rods) sales volumes were at 82 Kt (vs 35 Kt), up 137% YoY, driven by a sharp recovery in the domestic market. VAP sales, as a percentage of total metal sales, were 27% this quarter vs 11% in the same quarter last year, in line with market recovery.


Successful ramp-up of Smelter-3, post shutdown in Q1 FY22. Copper Cathode production was at 63 Kt in Q1 FY22 (vs 41 Kt in Q1 FY21), higher by 52% YoY. While overall copper metal sales were at 80 Kt (vs 58 Kt in Q1 FY21), Copper Continuous Cast Rod (CCR) sales in Q1 FY21 were up 50%, at 46 Kt (vs 31 Kt in Q1 FY21), driven by market recovery. EBITDA for the Business stood at Rs.261 crore compared to Rs.66 crore in Q1 FY21, up 295% YoY. Revenue from the Copper Business was Rs.7,094 crore this quarter, up 134% YoY, primarily due to higher global prices of copper.

Consolidated Results

Hindalco reported another best-ever quarterly financial performance in Q1 FY22 with EBITDA at Rs.6,790 crore (vs Rs.2,359 crore), up 188% YoY. The record results were driven by an outstanding performance by Novelis as well as India business, supported by a sharp recovery in all relevant markets, and improved macros. Consolidated Revenue for the first quarter stood at Rs.41,358 crore (vs Rs.25,283 crore), up 64% YoY. Consolidated PAT in Q1 FY22 was Rs.2,787 crore, compared to a loss of Rs.(709) crore in Q1 FY21, a jump of 493% YoY. Gross Debt declined by Rs.16,345 crore and Net Debt fell by Rs.10,389 crore as of June 30, 2021 from its peak on June 30, 2020. Consolidated Net Debt to EBITDA ratio improved further to 2.36x on June 30, 2021, from a peak of 3.83x on June 30, 2020.

Covid Response

Hindalco has prepared to tackle the third wave of Covid by fortifying its efforts to protect employees and the community. 

Over 51,000 employees have been vaccinated with at least one dose. In some states, the Government is collaborating with Hindalco to vaccinate the local population at the Company’s own hospitals and health centres. Hindalco’s dedicated team of 77 doctors and 245 paramedics is working round the clock to serve employees and the community. 

Hindalco has boosted medical infrastructure and equipped its own hospitals and health centres with critical care equipment such as CT scan machines, set up oxygen lines in remote locations to serve patients needing ICU care, and enhanced its lab testing facilities. Hindalco has strengthened its medical teams, including adding pediatricians, and upskilling its paramedics.

Business Updates & Recognition

  • Aleris Integration work continues with $100 million run-rate combination cost synergies achieved through the end of Q1 FY22.
  • As part of the integration, expansion project in Zhenjiang, China, is expected to begin in the current year with investments of $375 million over 3 years. This includes a new cold mill, automotive casting house, recycling capabilities, hot mill upgrade, etc.
  • The Guthrie, Kentucky automotive finishing plants in the U.S. and in Changzhou, China are both ramping up well.
  • Novelis’ expansion of recycling, casting, and rolling facilities in Pinda, Brazil is on track, with commissioning expected in Q2 FY22.
  • S&P Global Ratings raised its issuer credit rating on Novelis to 'BB’ from 'BB-’in July 2021.
  • Novelis launched an offering of two unsecured senior notes of $750 million each, at a coupon of 3.250% and 3.875%, due in 2026 and 2031, respectively.
  • 500 Kt Utkal Alumina expansion project to start commercial production in Q2 FY22.
  • Credit Rating upgrade by CRISIL from ‘AA’ to ‘AA+’ with ‘Stable’ outlook, in July 2021, for bonds of Hindalco.
  • CARE Ratings affirmed ‘AA+’ Credit Rating with Outlook upgraded from ‘Negative’ to ‘Stable’ in June 2021 for long-term loans and bonds of Hindalco.
  • Hindalco received highest Short-Term Rating of ‘A1+’ from ‘India Ratings’ in June 2021, for issuance of Commercial Paper.

About Hindalco Industries Limited

Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group. An $18 billion metals powerhouse, Hindalco is the world’s largest aluminium company by revenues, and a major player in copper. It is also one of Asia’s largest producers of primary aluminium.

Guided by its purpose of building a greener, stronger, smarter world, Hindalco provides innovative solutions for a sustainable planet. Its wholly-owned subsidiary Novelis Inc. is the world’s largest producer of aluminium beverage can stock and the largest recycler of used beverage cans (UBCs).

Hindalco’s copper facility in India comprises a world-class copper smelter, downstream facilities, a fertiliser plant and a captive jetty. The copper smelter is among the world’s largest custom smelters at a single location. Hindalco’s global footprint spans 48 manufacturing units across 10 countries.

Registered Office: Ahura Centre, 1st Floor, B Wing, Mahakali Caves Road Andheri (East),
Mumbai 400 093; Website: www.hindalco.com; E mail: hindalco@adityabirla.com;Corporate Identity No. L27020MH1958PLC011238