Hindalco Reports Consolidated Q2 FY22 Results

12 November 2021

Integrated portfolio strategy supported by stable operations and strong macros delivers another record-breaking performance
Net profit at all-time high of Rs.3,417 crore, up 8.8x

Key Highlights of Q2 FY22

  • All-time high Consolidated EBITDA at Rs.8,048 crore, up 56 per cent YoY and 19 per cent QoQ
  • All-time high Consolidated PAT at Rs.3,417 crore, up 783 per cent YoY and 23 per cent QoQ
  • Novelis quarterly Adjusted EBITDA at $553* million, up 22 per cent YoY
  • Novelis quarterly Adjusted EBITDA per tonne at $571*, up 16 per cent YoY
  • Novelis Net Income from continuing operations at $239* million, up 66 per cent YoY
  • All-time high quarterly India Business EBITDA at Rs.3,715 crore, up 152 per cent YoY; 48 per cent increase QoQ
  • All-time high quarterly Aluminium India EBITDA at Rs.3,247 crore, up 173 per cent YoY and 38 per cent QoQ; EBITDA margins of 42 per cent, highest in more than a decade
  • All-time high quarterly India Business PAT at Rs.1,815 crore, up 455 per cent YoY; 75 per cent increase sequentially
  • Consolidated Net Debt to EBITDA improved further to 1.93x as of 30 September 2021 vs 2.59x as of 31 March 2021
  • Hindalco to acquire Polycab’s 100 per cent equity stake in Ryker Base Pvt Ltd. to increase its Copper value-added portfolio

*As per US GAAP

MUMBAI: Hindalco Industries Limited, the Aditya Birla Group metals flagship, reported its highest net profit in Q2 FY22, surpassing all previous quarterly performances. The company’s consolidated PAT surged 783 per cent to Rs.3,417 crore, a multifold rise of nearly nine times YoY.

The results were driven by an exceptional performance by Novelis and India Business, supported by favourable macros, strategic product mix, higher volumes, and stability in operations. Novelis continued to report a high quarterly EBITDA, as a result of an upswing in demand for innovative and sustainable aluminium products, high recycled contents and an outstanding operational performance despite challenges in the automotive segment due to the global semiconductor chip shortage impacting the automotive industry.

Consolidated Financial Highlights for the Quarter ended September 30, 2021

Particulars (Rs. crore)
Q2 FY21 Q1 FY22 Q2 FY22 H1FY21 H1 FY22
Revenue from Operations 31,237 41,358 47,665 56,520 89,023
Earning Before Interest, Tax, Depreciation & Amortisation (EBITDA)          
Novelis* 3,392 4,090 4,100 5,311 8,190
Aluminium 1,188 2,352 3,247 2,161 5,599
Copper 242 261 352 307 613
All Other Segments 6 (6) 3 7 (3)
Business Segment EBITDA 4,828 6,697 7,702 7,786 14,399
Unallocable Income/ (Expense) - (Net) & GAAP Adjustments 343 93 346 (256) 439
EBITDA 5,171 6,790 8,048 7,530 14,838
Finance Costs 982 820 1,291 1,974 2,111
PBDT 4,189 5,970 6,757 5,556 12,727
Depreciation & Amortisation (including impairment) 1,838 1,649 1,735 3,389 3,384
Share in Profit/ (Loss) in Equity Accounted Investments (Net of Tax) - 2 - 3 2
Profit before Exceptional Items and Tax 2,351 4,323 5,022 2,170 9,345
Exceptional Income/ (Expenses) (Net)# 71 230 20 (348) 250
Profit Before Tax (After Exceptional Item) 2,422 4,553 5,042 1,822 9,595
Tax 637 1,299 1,615 606 2,914
Profit/ (Loss) from Continuing Operations 1,785 3,254 3,427 1,216 6,681
Profit/ (Loss) from Discontinued Operations (1,398) (467) (10) (1,538) (477)
Profit/ (Loss) After Tax 387 2,787 3,417 (322) 6,204
EPS (Rs./Share) 1.7 12.5 15.4 (1.4) 27.9
*As per US GAAP ;
# Exceptional Income / (Expenses) for Q1FY22, exclude Rs.346 crore (net of litigation cost of Rs.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, said:
“Our record-breaking performance this quarter is an affirmation of our fully integrated business model, which powers our performance in both upstream and downstream markets. Hindalco reported standout performances across all business segments: Indian Aluminium Business set a near global industry record by achieving EBITDA margin of 42 per cent. Copper Business delivered the highest-ever quarterly sales in Q2, with both smelters running optimally to meet the robust market demand. Novelis once again achieved a record EBITDA per tonne driven by higher volumes and favourable metal prices.

Our product-rich portfolio strategy continues to deliver results across diverse market scenarios. It encourages us to keep building the downstream asset base and expand our market footprint. The recent Ryker copper rod unit acquisition is in keeping with our downstream capex plans announced earlier this year. We also continue to push our ESG agenda and goals to meet our sustainability vision on net neutrality, water positivity, zero discharge and more.”

Business Segment Performance in Q2 FY22 (vs Q2 FY21)


Novelis recorded quarterly adjusted EBITDA of $553 million (vs $455 million), up 22 per cent YoY, on the back of higher volumes, favourable product mix and metal benefits. Novelis achieved an Adjusted EBITDA per tonne of $571 in Q2 FY22, compared to $493 in the prior year, an increase of 16 per cent YoY.

Novelis’ Net Income (excluding tax-effected special items) was $244 million, up 54 per cent YoY, driven by higher Adjusted EBITDA. Revenue was $4.1 billion (vs $3.0 billion), up 38 per cent YoY, due to higher shipments, global aluminium prices and market premiums. Total shipments of flat rolled products (FRPs) were at 968 Kt (vs 923 Kt), up 5 per cent YoY, with strong demand across end-product markets particularly beverage packaging and specialty products, partially offset by continued headwinds in the automotive industry on account of the semiconductor chip shortage.

Aluminium India

EBITDA was at an all-time high of Rs.3,247 crore in Q2 FY22, compared with Rs.1,188 crore for Q2 FY21, an increase of 173 per cent YoY, primarily due to favourable macros, improved product mix, higher volumes and better operational efficiencies. EBITDA margins reached more than a decade high of 42 per cent and continue to be among the best in the industry. Revenue was Rs.7,812 crore in Q2 FY22 vs Rs.4,796 crore in the prior year period. Aluminium India Business recorded metal production of 322 Kt vs 307 Kt in the corresponding quarter. Aluminium metal sales were up 12 per cent YoY at 338 Kt vs 303 Kt in the prior year. Aluminium VAP (excluding wire rods) sales volumes were at 86 Kt (vs 63 Kt), up 36 per cent YoY, driven by a sharp recovery in the domestic market. VAP sales, as a percentage of total metal sales, were 25 per cent this quarter vs 21 per cent in the same quarter last year, in line with market recovery.


Both smelters ran optimally during the monsoon quarter. Copper Cathode production was at 100 Kt in Q2 FY22 (vs 73 Kt in Q2 FY21), higher by 38 per cent YoY. While overall copper metal sales were at 110 Kt (vs 75 Kt in Q2 FY21), Copper Continuous Cast Rod (CCR) sales in Q2 FY21 were up 10 per cent YoY, at 70 Kt (vs 64 Kt in Q2 FY21), driven by market recovery. EBITDA for the Business stood at Rs.352 crore compared to Rs.242 crore in Q2 FY21, up 45 per cent YoY on the back of higher volumes, better operational efficiencies and improved by-product realisations. Revenue from the Copper Business was Rs.9,587 crore this quarter, up 101 per cent YoY, primarily due to higher global prices of copper.

Consolidated Results

Hindalco reported another record quarterly financial performance in Q2 FY22 with EBITDA at Rs.8,048 crore (vs Rs.5,171 crore), up 56 per cent 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 and higher volumes. Consolidated Revenue for the second quarter stood at Rs.47,665 crore (vs Rs.31,237 crore), up 53 per cent YoY. Consolidated PAT in Q2 FY22 rose to Rs.3,417 crore from Rs.387 crore in Q2 FY21, a jump of 783 per cent YoY. Consolidated Net Debt to EBITDA ratio improved further to 1.93x on September 30, 2021 compared to 2.59x on March 31, 2021.

Business Updates

  • Aleris Integration work continues with nearly $100 million run-rate combination cost synergies achieved through the end of Q2 FY22.
  • As part of the integration, the expansion project in Zhenjiang, China, is expected to begin in early 2022 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, have started production taking the total automotive finishing line capacity to over 1 million tonnes.
  • Novelis’ expansion of recycling, casting, and rolling facilities in Pinda, Brazil, have started production and are ramping up well.
  • Novelis successfully refinanced $1.5 billion unsecured senior notes ($750 million each at a coupon of 3.250 per cent and 3.875 per cent) due in 2026 and 2031, with an annualized interest savings of $35 million.
  • Novelis announced $130 million investment for plant upgrades at Oswego US, resulting in additional 124Kt hot mill capacity and enhanced finishing capabilities for automotive sheets.
  • 500 Kt expansion project in Utkal Alumina started commercial production in Q2 FY22 and has already achieved rated capacity, taking its total capacity to 2.1 million tonnes per annum.
  • Hindalco signed a definitive agreement with Polycab to acquire its 100 per cent equity stake in Ryker Base Pvt. Ltd. which has a 225Kt cast and rolled copper wire rods manufacturing facility.

 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, 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

Disclaimer: Statements in this “Media Release” describing the company’s objectives, projections, estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the company’s operations include global and Indian demand supply conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in the company’s principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the company conducts business and other factors such as litigation and labour negotiations. The company assume no responsibility to publicly amend, modify or revise any forward-looking statement, on the basis of any subsequent development, information or events, or otherwise.