- Consolidated Business EBITDA up 40 per cent YoY and 12 per cent sequentially
- Consolidated PAT at Rs. 1,877 crores, up 77 per cent YoY and nearly 5 times sequentially
Hindalco Industries Ltd., the Aditya Birla Group metals flagship, announced consolidated results for the quarter ended December 31, 2020. The company reported a consolidated PAT of Rs. 1,877 crores, up 77 per cent YoY, and a nearly five-fold sequential increase. The results were driven by a strong performance by Novelis and India Aluminium Business, supported by higher volumes and better product mix, lower input costs, stability in operations and cost saving actions. The Copper Business maintained its performance sequentially in Q3 FY21 versus Q2 FY21. Novelis reported an all-time high EBITDA as well as EBITDA per ton, as a result of continued demand for innovative, sustainable aluminium solutions and outstanding operational performance across its expanded business.
Commenting on the results, Mr. Satish Pai, Managing Director, Hindalco Industries Ltd., said: “Our Q3 results flag a return to business at pre-COVID levels with resurgent demand globally. Novelis achieved record shipments, driven by strong demand across product end markets. The India Business delivered an excellent performance with Aluminium value-added products continuing to record higher volumes. Along with market performance, we have strengthened our balance sheet which shows in a significant improvement in the consolidated net debt to EBITDA ratio. The inclusion of the Aleris business has positively impacted the overall top line and EBITDA, with realisation of synergies at $54 million on a run-rate basis in Q3.”
“Our performance is a reflection of our sustainability-led approach to business. Hindalco has been recognised as the world’s most sustainable aluminium company in the 2020 DJSI CSA ranking,” he added.
Business segment performance in Q3 FY21 (vs. Q3 FY20)
Novelis (including Aleris)
Novelis recorded its best-ever quarterly adjusted EBITDA of $501 million (vs $343 million), up 46 per cent YoY, on the back of higher volumes and improved margins. Adjusted EBITDA per ton was at an all-time high of $537 in Q3 FY21 (vs $430/ton), up 25 per cent YoY. Novelis’ Net Income (excluding tax-effected special items) was at a record high of $209 million, up 58 per cent YoY, partially offset by higher depreciation and amortization associated with the acquisition of Aleris. Revenue was $3.2 billion (vs $2.7 billion), up 19 per cent YoY, due to higher shipments, global aluminium prices and market premiums. Total shipments of flat rolled products (FRPs) were at an all-time high of 933 Kt (vs 797 Kt), up 17 per cent YoY, with the addition of the acquired Aleris business and strong demand across end-product markets.
EBITDA stood at Rs. 1,323 crores in Q3 FY21, compared with Rs. 1,045 crores for Q3 FY20, an increase of 27 per cent YoY, primarily due to favourable macros and lower input costs. EBITDA margin of 25 per cent was one of the best in the industry. Revenue was Rs. 5,294 crores in Q3 FY21 vs Rs. 5,483 crores in the prior year period. Aluminium India Business recorded metal production of 315 Kt (vs 328 Kt last year). Aluminium metal sales were at 315 Kt (vs 328 Kt in Q3 FY20). Aluminium VAP (excluding wire rods) sales volumes at 80 Kt (vs 75 Kt), up 7 per cent YoY, were driven by a sharp recovery in the domestic market. VAP sales as a percentage of total metal sales have risen to 25 per cent this quarter vs 21 per cent in the same quarter last year.
Copper Cathode production at 51 Kt in Q3 FY21 (vs 87 Kt in Q3 FY20), was lower YoY mainly due to planned maintenance shutdown in one of the smelters. While overall copper metal sales were lower at 73 Kt (vs 84 Kt in Q3 FY20), Copper Continuous Cast Rod (CCR) sales in Q3 FY21 were up 12 per cent YoY at 65 Kt. DAP (fertiliser) sales volume was at an all-time high at 156 Kt, up 135 per cent YoY, on the back of continuous robust demand. EBITDA for the Business stood at Rs. 202 crores compared to Rs. 256 crores in Q3 FY20. Revenue from the Copper Business was Rs. 6,133 crores this quarter, up 28 per cent YoY, primarily due to higher LME.
Hindalco reported an excellent quarterly consolidated operational and financial performance in Q3 FY21. Business EBITDA stood at Rs. 5,242 crores (vs Rs. 3,733 crores), up 40 per cent YoY, driven by the best-ever quarterly performance by Novelis and a sharp recovery in all relevant markets in India Aluminium business. Consolidated Revenue for the third quarter stood at Rs. 34,958 crores (vs Rs. 29,197 crores), up 20 per cent YoY. Consolidated PAT was Rs. 1,877 crores, compared to Rs. 1,062 crores in Q3 FY20, a jump of 77 per cent YoY. The consolidated net debt to EBITDA ratio has improved significantly to 3.09x on December 31, 2020, from a peak of 3.83x on June 30, 2020.